Human Capital Growth Research Articles

Foreign Direct Investment Legislation: A Precondition for Creating a Favourable Investment Climate in the Case of Kosovo

Abstract Foreign direct investment (FDI) represents a significant impetus for sustainable economic growth and development. From the context of the importance that FDI carries as the transfer of knowledge, experience, employment growth and development of human capital, its attraction definitely requires a proper legal basis, namely, the implementation of the law and the proper functioning of judiciary. The main aim of this study is to elaborate the legislation on foreign direct investment in Kosovo and to analyse FDI in Kosovo over the years. This study is based on local literature, specifically the interpretation of the current law on FDI in Kosovo and international literature to examine the effects of legislation on a business climate. This study is descriptive, comparative and analytical, based mainly on secondary data provided by the World Bank indicators on FDI in Kosovo over the years. Kosovo as a young, post-war state has drafted a number of reforms in the economic field and in the field of law enforcement and judiciary, but undoubtedly the current law governing strategic investments has room for improvement, thus, must be enforced in order for investors to feel safe while operating in Kosovo. This study also concludes that Kosovo is attractive for foreign investors due to the increasing rate of GDP, labour market conditions, high rate of degree holders complying with labour market requirements. The study goes further with recommendations on supplementing the current law versus the European FDI legislation. The major implication of the study is the comparative analysis of Kosovo’s law in regard to the EU Law on FDI.

ИНСТИТУЦИОНАЛИЗАЦИЯ СОЦИАЛЬНО-ТРУДОВЫХ ОТНОШЕНИЙ В КОНТЕКСТЕ ВЗАИМОДЕЙСТВИЯ ПРОИЗВОДИТЕЛЬНЫХ СИЛ И ПРОИЗВОДСТВЕННЫХ ОТНОШЕНИЙ: ОРИЕНТАЦИЯ НА РАСШИРЕННОЕ ВОСПРОИЗВОДСТВО РАБОЧЕЙ СИЛЫ, РАЗВИТИЕ И РОСТ

The article aims to solve the problems of the development and economic growth of enterprises, organizations, regions, countries through the institutional transformation of social and labor relations during the periods of technological re-equipment of industries and industrial complexes. In theory and methodology, the article is based on Karl Marx’s well-known law of the correspondence of relations of production to the level and nature of the development of productive forces. It draws attention to the fact that, when technological changes (which are nothing more than the development of productive forces in the social and labor sphere) are introduced, employees’ resistance to changes arises. The reason for the resistance lies in the fact that the social and labor (production, according to Marx) relations that had developed by the time the changes were introduced collide with the technologies being introduced (productive forces). In order to reduce the potential of employees’ resistance to changes, the article proposes the following: when managing the implementation of changes, a recommendation is to exert managerial influence on the established institutions of social and labor relations, too. The transformation of the latter, which aims at resolving the arising objectively determined contradictions, will, as follows from the logic of Hegel, contribute to the technological development of enterprises, which, according to Joseph Schumpeter’s concept, will also ensure economic growth. Social and labor relations are influenced through the reproduction of the workforce, expressed in employees’ better qualifications, which, according to the theoretical provisions of Professor Aleksandr Bychkov, ensures the growth of human capital. Based on the provisions of the classical school of political economy, the concept of development of Schumpeter, the logic of Hegel, and the theoretical provisions of Bychkov, the article proposes a methodological scheme for the institutional transformation of social and labor relations. The scheme aims at resolving objectively determined contradictions between productive forces and social and labor relations, which will ensure technological development and economic growth.

The Human Side of Structural Transformation

We show that the global human capital increase during the 20th - century contributed to structural transformation. We document that almost half of the decline in aggregate agricultural employment was driven by new birth cohorts entering the labor market. We use data on educational attainment and compile a comprehensive list of policy reforms to interpret the differences in agricultural employment across cohorts. We find that the increase in schooling led to a sharp reduction in the agricultural labor supply by equipping younger cohorts with skills more valued out of agriculture. Interpreted through a model of frictional labor reallocation, these facts imply that human capital growth accounts for about 20% of the global decline in agricultural employment. JEL codes: J24 ; J43 ; J62 ; L16 ; O11 ; O14 ; O18 ; O41 ; Q11

The Influence of Learning by Doing Effect and the Accumulation of Human Capital on Economic Growth

Based on Lucas (1988) human capital model, our paper introduces Romer (1986) the concept of learning by doing and tries to establish an endogenous growth model under a closed economic system, so as to explore the impact on the long-term economic growth rate under the consideration of learning by doing effect and human capital accumulation. We found that when the consumption intertemporal elasticity of substitution is equal to 1, the growth rate of human capital will show a fixed growth; when the consumption intertemporal elasticity of substitution isn’t equal to 1, we have a higher growth rate of human capital. In terms of economic growth rate, regardless of the value of consumption intertemporal elasticity of substitution, we can get a higher economic growth rate. It shows that learning by doing and human capital has a positive effect on the economic growth rate. Even if the human capital growth rate shows a fixed growth, the learning by doing effect can also promote the long-term economic growth rate of the system.

Improving management as a way to increase labour productivity

The article gives an overview, performs analysis and classification of successful managerial practices applied at Russian industrial enterprises in the framework of the national project “Labour productivity and employment support”. The paper emphasizes the main factors of labour productivity growth as follows: investment policy, growth of human capital, and efficient use of managerial capital of enterprise. In order to determine the need of enterprises to increase labour productivity, the author proposes four universal criteria that signal the existing inefficiency even before the loss of competitiveness: 1) the dynamics of labour productivity in the company is not positive during a given period; 2) the company is behind competitors by labour productivity indicator; 3) the company is behind competitors by labour productivity growth rates indicator for a certain period; 4) unit production costs rise. These criteria allow you to take into account the situation both within the enterprise and in comparison with other enterprises. Each criteria can be considered separately or in combination with the others, applied to enterprises of different industries, specialization, and scale. Criteria indicate the direction of development in which the company is experiencing difficulties at the moment, or may experience them in the future.

Regional Dimensions of Human Capital and Economic Growth: A Review of Empirical Research

Intuition thus tells us that the relationship between human capital and economic growth at the regional level is more complex compared to the national level. The aim of this article is to survey the theoretical and empirical approaches of the relationship between human capital and economic growth at the regional level. We selected all articles in top scientific journals whose authors used the term human capital in their keywords. The total sample consists of 21 articles from the Journal of Economic Geography, 46 articles in Regional Studies, 35 articles in Papers in Regional Science and 4 articles in Economic Geography. The theoretical and empirical research at the regional level highlights the role of interregional migration, and the role of human capital in externalities in dense urban agglomerations. The greater complexity of the economic processes associated with the accumulation of human capital in the regions requires policies tailored to the needs of the regions.

English

English

EDUCATION AND THE LABOUR MARKET IN POLAND – SELECTED ISSUES

Education is considered as an important factor of well-prosperous economy. Education which corresponds to the needs of a labour market becomes the key educational target of young people and employees who want to adopt to the changes at the labour market. Therefore there are still challenges for education in Poland – how to modify the process of teaching and how to infl uence the process of learning in such a way that education would become an important factor in growth of human and social capital. Contemporary education should take into account variable requirements of the labour market, including also needs of the present and future employees and employers. An important challenge for education in Poland is to adopt its structure and teaching programs to the needs of employees not only on the domestic labor market, by also on the labour markets of other countries, mainly in Europe. Simultaneously, Polish educational system must be competitive with respect to those of other European countries, take into account demographic and technological changes in order to prepare employees willing to work in diff erent countries.

First World Aging: Scenario Forecasts of Dependency Ratios

Population aging in the first world and its expected consequences are actively discussed in the research community. Effects of aging can be seen in the age structures projected for various countries by UN DESA. However, their «medium» scenario most frequently used by researchers to understand the effects of aging is based on the national-level assumptions (their set being rather fixed and limited in number). In this paper we propose a different approach, where age structures and dependency ratios are projected based on global-level assumptions impacting the demographic dynamics of each particular country. As a first approximation, this approach gives us 4 scenarios of demographic dynamics associated with: 1) the growth of human capital (in particular, an increase in the level of education); 2) stagnation of human capital; 3) a decrease in global integration and migration flows; 4) increased globalization, increased openness of borders and migration flows.

ПОСЛЕДСТВИЯ РАСПРОСТРАНЕНИЯ ЦИФРОВЫХ КОММУНИКАЦИЙ ДЛЯ РАЗВИТИЯ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА: ПОЗНАВАТЕЛЬНЫЙ ПОТЕНЦИАЛ СОЦИОЛОГИЧЕСКИХ ПОДХОДОВ

What is the impact of the digitalization of society, primarily of the communicative sphere, on its human capital? Will the new generations, whose abilities and capabilities have been enhanced by digital technology, be more educated and more efficient than the previous ones? Or does the proliferation of new technologies have side effects in the form of restrictions on the growth of human capital, which will lead to impoverishment, diminution of the capabilities of the modern worker? Similar questions arose during the formation of each new technological order, and were first expressed by Plato in the dialogue Phaedrus, where he asks whether people will forget how to remember, having learned to write. They are also relevant in the era of digitalization. Sociologists have always been interested in the consequences of the development of technology and technology for society, its structures and institutions, for the perception of a person. A sociological view of the consequences of digitalization makes it possible to identify not only the advantages, but also new cultural, structural and institutional constraints for human capital - the spread of clip consciousness, shifting to decision-making machines, the loss of reliability of educational content and the risks of inaccurate information, the growth of the supply of unskilled labor based on digital platforms, transformation of the employee’s attitude and requirements to working conditions, etc...

Foreign Investment in Buryatia

ABSTRACT The article analyzes foreign investment in Buryatia based on the activity of foreign and joint economic ventures. Compared with other industrial regions in Eastern Siberia, Buryatia has less foreign investment, a prevalence of natural persons among business organizers, a lower concentration of production, and an outdated economic structure that is dominated by trade and construction. Direct foreign investment in the region is predominantly focused on the lumber industry and several mining enterprises. Such a sectoral structure hinders the inflow of new technology and the growth of human capital. To increase foreign investment, the republic must expand exports and integrate with the economic corridor of China–Mongolia–Russia. At the same time, investment policy should attract resources to the technological areas of communication and transport with more joint ventures to retain profits in the territory.

Неравенство жизненных шансов в российском обществе и фактор территории: взгляд из провинции

The authors apply to the sociological data and demonstrate a significant difference between the life chances of the population in the Russian province and in the capital cities. The special attention the authors pay to the comparison of the abilities to achieve the educational and career goals. As the article notes, there is also an intra-regional inequality of territories, although not to a large extent. The authors claim that regional and local authorities ought to develop some measures of stimulation of the growth of human capital, creating conditions for the local professional and entrepreneurial self-realization, for the encouraging forms of active local identity that form active entrepreneurial practices. It is necessary to form a system of an adequate assessment of programs, projects, etc. at the federal level, and its implementation could equalize the life chances of the residents of the different regions.

Human Capital and Economic Growth in Nigeria: Does Life Expectancy and Schooling Matter?

This paper examines the economic growth effect of human capital in Nigeria using annual time series dataset spanning 1970 to 2017. Life expectancy and schooling were the human capital components considered while the growth rate of Gross Domestic Product captures economic growth. The Two-Stage Least Squares approach was adopted in the analysis after testing for unit root and cointegration among variables. Results indicate that both physical and human capital exerts a significant positive impact on economic growth in Nigeria. Specifically, life expectancy, secondary and tertiary school enrolments - components of human capital - significantly spur economic growth while primary school enrolment and average years of schooling have no significant effect on the economic growth of the country. The paper recommends, amongst others, that all levels of government should raise the percentage of health and education funds in their financial disbursement for optimal performance of the economy. Keywords: Life expectancy, Schooling, Human Capital, Economic Growth, Two-Stage Least Squares. DOI: 10.7176/JESD/11-16-10 Publication date: August 31 st 2020

Human Capital, Industrial Structure Upgrading and Economic Growth in China: A Literature Review

The research on human capital, industrial structure upgrading and economic growth has always been one of the focus issues in academia. The existing literature is developed from different perspectives. First of all, the research on human capital mainly focuses on the research of human capital and economic growth, including the relationship between total human capital and economic growth, the relationship between human capital structure and economic growth, and the relationship between healthy human capital and economic growth. Secondly, the research on the upgrading of industrial structure includes the upgrading of industrial structure and economic growth, the influencing factors of the upgrading of industrial structure and so on. Among them, the influencing factors mainly include technological progress, market supply and demand, population, trade and government policies. Thirdly, the research on the impact of human capital on the upgrading of industrial structure mainly includes the matching of heterogeneous human capital and industrial structure, and the impact mechanism of human capital on industrial structure. This paper systematically reviews the development of literature on human capital, industrial structure upgrading and their relationship, and points out the problems existing in the literature, possible improvements in the future and several issues that may need attention in the future.

Trade and life expectancy in China: a cointegration analysis

ABSTRACT The purpose behind this paper is to empirically examine the relationship between trade openness and life expectancy for the Chinese economy. Data are collected for the period 1970–2015. Autoregressive Distributed Lag (ARDL) Modeling technique is utilized to find out the presence of long- and short-run relationship between trade openness and life expectancy. The findings indicated a stable long-run positive relationship between trade openness and life expectancy. Government expenditures, number of physicians and human capital growth have also positively and significantly impacted life expectancy. Similarly, growth of employment and number of beds in hospitals have influenced life expectancy negatively. Moreover, in the short run, government expenditures, growth of employment, number of physicians and human capital growth have maintained their relationship with life expectancy both in terms of coefficient signs and significance level while the relationship between trade openness, number of hospital beds and life expectancy is reversed.

The problems of measurement and growth of human capital

The problems of measurement and growth of human capital

Health Human Capital Investment and Economic Growth

Economic growth depends on factor inputs, and health human capital investment is a very important factor input. We set up a three-period overlapping generation model of personal health investment and government public health investment in the formation of physical capital and human capital and its impact on economic growth. Our findings show that health human capital investment can increase economic growth. We also conducted empirical research on the relationship between health human capital investment and economic growth by using China’s provincial panel data from 1999 to 2016. The robustness test of endogenous and interactive term regression confirms our results. We found that individual health investment has the greatest impact on economic growth. Therefore, China's health strategy is consistent with the policy of economic growth. China should further expand health investment and optimize the structure of health investment to promote its economic growth.

English

English

Positive feedback in skill aggregation across Chinese cities

ABSTRACT This paper examines whether human capital levels diverged across Chinese cities between 1990 and 2010. By employing a series of instruments for the initial human capital share, consistent positive feedback between current human capital levels on the subsequent growth of human capital in the 2000s is found. The findings are also robust to alternative instrumental variables. Further evidence suggests that a city's industry structure does not explain the positive feedbacks, but rather urban amenities appear to be the primary causal factor. To mitigate large provincial inequality in development, China should mitigate growing differentials in human capital by improving local urban amenities.

Determinant of Productivity Growth:

Total factor productivity growth has played a significant role in uplifting the economic development process of nations in recent years. This paper uses the recently published data of Penn World Table (PWT, 9) for six emerging economies (China, India, South Korea, Malaysia, Thailand and Taiwan) to establish a relationship between the growth of total factor productivity and its various determinants. Panel data econometric techniques are employed and the data utilized were spanning from 1955 to 2012. We found that growth of real GDP and human capital are positively and significantly related with the growth of total factor productivity. Similarly physical capital stock is although positively impacted the growth of total factor productivity but however this relationship is not significant statistically. Lastly, an inverse and significant relationship is observed between employment level and total factor productivity growth for the selected emerging economies. The study concludes that relatively richer and highly educated economies have improved their productivity while employment level has adversely affected the growth of TFP. The results of the study imply that economies should focus on income and human capital increasing policies and further to translate the benefits the focus should be on efficiency of labor rather increasing the employment level.