Abstract

Human capital are not only the engine of economic growth but also increase the global competitiveness for countries. Improving labor quality helps countries improve long-term economic efficiency. This article uses annual data in the period 1990 - 2017 in Vietnam, which attempts to explore the relationship between total capital formation, the labor quantity, education levels and life expectancy with economic growth. By using OLS regression, the analysis results shown that the gross capital formation, the labor quantity, education levels and life expectancy are positive and have a significant impact on GDP in Vietnam. Furthermore, the Granger causality test indicates that there is a two-way causal relationship between labor and economic growth (GDP) in Vietnam. Keywords: Human capital, Economic growth, Education levels, Granger causality DOI : 10.7176/IEL/9-5-04 Publication date :June 30 th 2019

Highlights

  • Labor is the growth motivation for the economic development of countries in the world, including Vietnam

  • Modern growth theory has demonstrated the factors contributing to economic development in terms of material and human capital and arguing that the main driving force of economic growth is the accumulation of human capital and the main difference in living standards among countries is the difference in education and skill level (Amjad, 2005)

  • The regression coefficient of GCF/L in the estimated regression line is 0.3735296 which implies that which shows that 1% rise in GCF/L would result in 0.3735% increase in Gross Domestic Product (GDP) of Vietnam

Read more

Summary

Introduction

Labor is the growth motivation for the economic development of countries in the world, including Vietnam. Human capital have a direct relationship with labor productivity, thereby contributing positively to economic growth (Becker, 1994; Schultz, 1961; Mincer, 1958; Solow, 1956; Romer, 1987 and Barro, 1991). Several empirical studies have noted a strong and positive relationship between human capital (education and health) and economic growth (Akram et al, 2008, Kakar et al, 2011). Education and health are two important aspects in improving the quality of human capital (Becker, 1964; Schultz, 1961). Improving productivity when workers have high skills and knowledge, along with their physical and mental health can perform their tasks with higher efficiency (Bong, 2009). Workers with higher education levels can adapt to new technology faster than workers with low education levels

Methods
Results
Conclusion
Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.