Human Capital Economic Growth Research Articles

Peran Infrastruktur, Modal Manusia, dan Keterbukaan Perdagangan Ekonomi Terhadap Pertumbuhan Ekonomi

Economic growth is the basis of a country's progress. Economists identify various challenges and issues surrounding economic growth. Some common issues include international trade, infrastructure, education, and workforce skills. The aim of the research is to determine the role of development factors on economic growth. These development factors include infrastructure, human capital, and openness to economic trade which will influence economic growth. The method used in researching this article is through literature study. Literature study is to obtain information through notes, literature, documentation and other things that are still relevant to this research. The role of infrastructure, human capital, and economic growth have a significant role in economic growth. Infrastructure development has a role in encouraging economic growth, both at the national and regional levels, as well as in reducing unemployment levels, alleviating poverty, and of course, improving community welfare. In the context of human capital, the Indonesian government continues to invest through various programs to improve the quality of the role of human capital in economic growth. As well as policy planning to utilize the benefits of the role of trade openness while still protecting vulnerable sectors, in attracting foreign capital investment.

Индекс человеческого развития Китая и экономический рост: ретроспективный анализ и глобальная перспектива

Currently, it becomes important to examine the role of human capital in the context of China’s economic development and its impact on the world economy. The paper reconstructs a realistic Human Development Index (HDI) and corresponding dimensional indices of the People’s Republic of China (PRC) and its provinces for 1990–2020. The obtained indices were compared with those of the major countries of the world or countries similar to Chinese provinces, revealing that China underestimates its HDI, according to the United Nations Development Programme data. To analyse the role of human capital in economic growth of the world, China, and a group of countries similar in population size and HDI to Chinese provinces, a constructed model combined human capital with education quality and physical capital. The findings show that the PRC overcame negative conditions affecting its ability to grow rapidly. It took China just 30 years to reach the same level of HDI that other countries achieved in 40 years. Additionally, inequalities in HDI of Chinese provinces were significantly reduced. By 2025, 90 % of the PRC’s population is expected to reach a very high level of human development, thus completing the transformation from a developing to a so-called developed country. Educational human capital explains almost three-quarters of economic growth variation in the long run, while the average duration of education will continue to influence economic growth in the next 10–30 years. Considering demographic, institutional, and technological effects, as well as the objectives of the 14th Five-Year Plan, an increase in the duration and quality of education in China is predicted. The paper demonstrates that PRC’s recent economic growth is due to an increase in both physical and human capital.

Revisiting the human capital-economic growth nexus in Africa.

The online version contains supplementary material available at 10.1007/s43546-023-00494-5.

The Effect of Human Capital on Economic Growth: Evidence from Kazakh Regions

The importance of human capital for economic growth is now widely recognised and has been studied extensively. However, the influence of human capital on economic growth of Kazakhstan has not yet been studied fully enough. In particular, to the best of the knowledge, there are no studies that use various approximations of human capital and utilise both direct and indirect approaches. Using educational and health indicators, this paper tests empirically how human capital influences economic growth of Kazakh regions over the period 1994-2019 both as a production function and through total factor productivity (TFP). The analysis revealed that human capital is insignificant as a production factor but has significant indirect effect on the TFP growth rate. The latter is realised through the ability to imitate and introduce new technologies from outside rather than through the domestic innovation. The scientific novelty of this research is as follows. Firstly, it uses both educational and health approximations of human capital. Secondly, it studies how human capital influences economic growth of the Kazakh regions both directly as a production factor and indirectly through TFP. Thirdly, it checks for the presence of spatial dependence in data across Kazakhstan regions. Fourthly, it constructs average years of schooling data across the regions of the country. The results of the study are important for designing policies to increase economic growth of the country and its regions. As a further development of this work, it seems interesting to use other approximations of human capital.

Improving the Quality of Human Resources through the Application of Good Psychology and Human Capital

We'd want to look at existing research ideas on the aspects that lead to positive psychology, as well as the advantages of boosting the quality of human resources and human capital for economic growth. We gather scientific publications from Emerald, Science Direct, Sciendo, and Korean science, as well as books written by psychologists and economists, using Content Analysis. Human capital is an important thing that always exists in life around the world, human capital must and can be measured in quality, but there are challenges in developing human capital, namely: lack of operational definitions and value assessment of human resources owned, process complexity, subjectivity in its application, and the inconsistent information needs of administrators. In a buying and selling business, there are also unique characteristics, namely the lack of structure, the importance of persuasion and the development and maintenance of good relationships, things like this greatly affect the performance of Human Resources. Another thing that can affect the quality of your Human Resources is psychology. Employees who have good psychology tend to find it easier to get a job and get a salary which results in the economic stability of each individual and a country.

Female Human Capital and Economic Growth in Sudan: Empirical Evidence for Women’s Empowerment

Human capital in general spurs economic growth. Female human capital in terms of education and health in particular is important for economic growth in countries where poverty and gender inequalities are pervasive, such as Sudan. This study aimed to investigate the role of female human capital in economic growth in Sudan, together with female labor force participation and women’s participation in the national parliament. The study applied a basic autoregressive distributed lag model ARDL and a nonlinear (NARDL) accounting for structural breaks to time-series data over the period 1975–2021. The bounds tests revealed that female human capital variables and economic growth have a long-run equilibrium relationship. The empirical results revealed that female human capital has a negative effect on gross national income per capita (GNIP). However, female labor participation was found to have a significant positive effect on economic growth in both models. Prevalence of HIV/AIDS among women of age 14–25 has a significant negative effect on economic growth, which is likely also reflecting the negative effect of female human capital. Results also showed that women’s participation in the parliament has positive and significant effect on economic growth in the short run only. The study argues for enhancing female human capital via female enrollment in education and through the promotion of women’s health, including combatting HIV/AIDS. Effective female labor participation can be enhanced through reductions in women’s vulnerability in employment and increasing their work in waged formal sectors. Women’s political empowerment could foster long-term growth, but its quality aspects must be ascertained.

THE IMPACT OF HEALTH EXPENDITURE ON ECONOMIC GROWTH IN NORTH MACEDONIA – APPLICATION OF LUCAS MODEL

As most empirical evidence indicates, health has a positive impact on economic well-being and contributes to solving fundamental economic problems, this paper aims to analyze the relationship between health expenditures, as an indicator of human capital, and economic growth. In the process of globalization, human capital is a critical factor for an economy based on knowledge. Therefore, applying the Lucas model, the study aims to present the role and analyze the impact of human capital on economic growth in North Macedonia from 2000 to 2019, using econometric analysis of health expenditures time series that are widely accepted in theory and empirical research. In this regard, regression analysis (OLS method) is performed, followed by an examination of the stationarity of the series, as well as an examination of the necessary conditions for selecting the best model from the available alternatives. The results show a positive relationship between health expenditures and economic growth in North Macedonia, while this analysis contributes to the broader literature on the importance of human capital for economic growth in North Macedonia. Moreover, the results show that by adding an additional unit of human capital, the returns on investments in physical capital will be higher. The paper emphasizes the importance of human capital accumulation in North Macedonia, showing that health (measured by health expenditures) is an important factor in understanding the role of human capital in the process of economic growth.

Bayesian versus Classical Econometric Inference to Revisit the Role of Human Capital in Economic Growth

Application of Bayesian inference to analyze real economic phenomena is rare in the literature on applied economics. This study contributes in two ways. Firstly, it contributes to methodological advancement in the literature on applied economic modeling by estimating a structural model using the classical econometric framework as well as the Bayesian two-stage econometric framework. The performance of the two approaches is compared due to the small sample size and the best model is selected. Secondly, the study is used to get fresh evidence about the impact of human capital upon economic growth in the form of Bayes mean estimates along with their Highest Posterior Density Intervals (HPDIs) which give certain ranges of estimates within which the parameters are likely to lie. Annual data on the Pakistan economy ranging from 1965 to 2019 is used for the estimation of the model. Classical estimates are obtained using the efficient GMM method. Bayes mean estimates are simulated using a Bayesian two-stage procedure assuming multivariate normal-Wishart informative priors. Results show that the Bayesian econometric framework gives more precise parameters’ estimates as compared to the classical econometric framework, and hence, the Bayesian inference may be preferred over classical inference, especially in the case of a small sample size. The Bayes estimates show that a 1% increase in education capital and health capital causes raising economic growth by 0.0091% and 0.1778%, respectively, with a 0.95 probability that the estimates are likely to lie within the intervals 0.0085%–0.0097% and 0.1606%–0.1952%, respectively. Hence, human capital might be considered a vital factor to achieve economic growth in Pakistan. Moreover, health capital shows strong effects as compared to education capital in the process of economic growth.

English

This paper carried out a contextual analysis of different models of performance appraisals in both developed and developing countries on Higher Education Institutions (HEIs). First, it conducted a thorough examination of the contextual implications of performance appraisal models in developed and developing countries. Secondly, to better understand the various performance appraisal models for HEIs in both developed and developing countries, a review of the theoretical and conceptual framework of several performances appraisal models were conducted. The third phase of the review focused on performance appraisal in educational institutions in selected countries, as well as a review of Eric Alan Hanushek article on the role of human capital in economic growth in developing countries. Finally, the paper presented the findings and the research gaps identified in the review. In carrying out the first phase of this paper, the emphasis was placed on the importance of the context, which involves the interplay between the extrinsic (such as societal norms, economic and political situation of the country) and the inherent (institutional culture and leadership style) factors within which the HEI operates. Intrinsic and Extrinsic factors affecting the performance assessment of HEIs in Iraq, Kurdistan, have been reviewed. A similar review was carried out in HEIs in the United Kingdom and the United States of America to determine the extent to which organizational culture and social norms influence the formulation of performance appraisal models.   Keywords: Performance appraisal, higher education institution, institutional culture performance management.

Statistical Parables

In the early 1960s, the agricultural economist Theodore W. Schultz issued a critical assessment of the prevailing tenets of development economics in Transforming Traditional Agriculture. Aimed at educated bureaucrats rather than academic economists, he proposed no new development theories. Instead, he drew inferences from statistics in case studies to argue that no special economic theory was required in the development space. He packaged these studies as statistical parables to provoke skepticism of development theory among those involved in direct technical assistance in developing countries. Drawing partly on their long experience with US and Soviet agricultural modernization, Schultz and members of his agricultural economics group at the University of Chicago used suggestive empirical evidence to stress the importance of investment in human capital in economic growth. By appealing to government administrators in both the United States and developing countries, Schultz helped shift development policies toward state-supported technical assistance, public education, and market-oriented policies for the agricultural sectors in the global South.

Do Human Resources Run Economic Growth? Empirical Evidence From Pakistan

This study analyzes the role of human capital in economic growth using data from 1981 to 2017. The data were taken from the World Bank (WDI) and the Economic Survey of Pakistan (Various Issues). It was scrutinized for stationarity of variables through ADF and an appropriate time series econometric technique of ARDL is applied for empirical analysis. The results suggest that both proxies of human capital, education, and health have positive impacts on the economic development of Pakistan. The study findings also suggest that government machinery may divert enough resources for the improvement of education and health services to accumulate human capital for achieving the desired goal of higher growth and development.

The Evolutionary Role of Higher Education in Sustainable Development: Pandemic 2020–2021

This article investigates the role of higher education in the economic development of the country. The research aims to investigate the theoretical and methodological basis of the role of higher education and human capital in economic growth, evaluate the current state of higher education within pandemic COVID-19, and develop scientifically and applied recommendations to strengthen capacity and improve the competitiveness of human capital in the developing countries.
 An analysis of the existing researches and debates is made. We defined the state of higher education in Kazakhstan and considered the changes in education within the context of COVID-19. We made multiple correlations and regression analysis based on the education coverage index and GDP(mln KZT), where defined the moderate correlation between two variables. Statistical data is studied in a period from 2000 to 2019.
 This paper contributes to the literature by fulfilling a theory of human capital development in the knowledge economy, revealing the relational mechanism between higher education, sustainable development, and the economic boundary of this relationship. It also contributes to the further understanding of the role of higher education in economic development. This study result implies to strengthen capacity and improve the competitiveness of human capital, draft human capital development policy.
 Keywords: SDG; COVID-19, human capital, higher education

Economists and the Emergence of Development Discourse at OECD

This paper discusses how economists contributed to OEEC-OECD policies between the 1950s and the 1960s, when OECD emerged as a truly global organization. We aim at offering a contribution, based on extensive archival sources, to what Coats defined the “ambitious effort” to study “the systematic analysis of the activities and influence of professional economists in the modern (i.e., post-1945) world” (Coats 1986: vii). In particular, at the organizational level, we highlight the porous relationship between national and international governmental circles. As for the policy agenda, we discuss how a new focus on the nexus between backwardness, development policies, and the economics of education emerged in the European context, and how this focus was conceptually distinct from analyses centered on growth in advanced economies. This specifically European developmental focus produced a coordinated effort at addressing the educational question, which overlapped with new trends in economic research on the role of human capital for economic growth.

The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?

PurposeThe purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.Design/methodology/approachThe authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.FindingsThe empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.Practical implicationsThe results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.Originality/valueThis study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

Structural Changes and the Index of Economic Well-being: Empirical Evidence from the Iranian Economy

It is a well-established empirical fact that economic growth and development brings about major changes in sectorial output, employment, and consumption structure. In the context of economic development discussion, structural change refers to the change in key components of macroeconomic indicators, including national production and expenditure, exports and imports, population, and the sectorial composition of labor. Considering the importance of human capital for economic growth and development, the most important of the above factors is the labor market and the sectorial composition of employment. Another important dimension of economic development is economic well-being. In this study, we formulated and calculated two indicators called the Coefficient of Structural Change of Iran (CSCI) and the Index of Economic Well-Being of Iran (IEWBI), and then used the vector autoregressive (VAR) modeling method and the software EViews v.10 to analyze the impact of structural changes of Iranian economy on IEWBI. The results indicate the positive effect of structural changes and therefore development policies on the economic well-being of Iran when the weighting scheme of IEWBI was biased in favor of the consumption flow dimension, and the negative effect in other cases. JEL: C39, I31, O11.

The role of institutional quality and human capital for economic growth across Chinese provinces – a dynamic panel data approach

ABSTRACT There is an ongoing debate within the economic growth and development literature whether institutions or human capital are more important for economic growth. We add further arguments to this discussion by focusing on a particular country, namely China. China is an interesting case study since it is often regarded as an exception by having achieved miraculous growth for more than three decades despite relatively low institutional quality. We employ a dynamic panel data model to analyze the role of improvements in institutional quality and human capital accumulation for the economic success of a province in China over the period 2003 to 2007. Using system GMM estimation, we find that while growth in human capital fosters economic growth all over China, only coastal provinces record a positive effect of institutional improvements on the growth rate of per capita income.

Examining Economic Growth Through Brand Development: A Multinational Analysis

Due to the increasing importance of human capital for economic growth, this article aims to clarify the relationship between economic growth and human capital by concentrating on the growth effects of an average number of brands in the economy. An endogenous growth model where branding emerges as the “growth engine” of the economy is followed by a quantitative analysis regarding the relationship between brands and economic growth. The findings suggest that developing countries should shift from traditional mass production to high value-added production, such as brand development, to achieve a similar economic performance in developed countries.

A Study on Causal Relationship between Trade, Human Capital and Economic Growth Using Panel-VAR

The purpose of this study is to analyze the causal relationship between trade, human capital accumulation and economic growth and to provide implications for Korean manufacturing industry. The results of panel Granger causality analysis using panel VAR model are as follows. The export, human capital, ‘export and human capital interaction term’ have a causal relationship to economic growth. Economic growth, human capital is the cause of exports. However, Economic growth has no causal on human capital, and exports have causality to human capital but have low statistical significance. Import has Grnager causal relationship with economic growth. Economic growth also has a causal relationship with imports. Therefore, there is a bi-directional causal relationship between import and economic growth. Imports have a causal relationship with human capital and have a higher significance level than those of exports. And the interaction terms of exports and imports with human capital have causal relations with economic growth. This implies that trade can affect human capital and ultimately economic growth through income distribution. But economic growth does not cause human capital accumulation. These results show that human capital is a major causal factor for export, import, and economic growth, and policy efforts are needed to foster human capital for economic growth.

Role of Human Capital in Economic Growth: A Comparative Study of India and China

Human capital constitutes a significant ingredient of economic growth. As more and more countries are moving on the path of growth and development one needs to explore the contribution of human capital in economic growth. Considering health and education as two components of human capital, the paper attempts to achieve three-fold objectives. First to examine the status of health and education in both the countries for the period 1970-2016, secondly to comprehend the role of public expenditure on health in economic growth and finally to examine the role played by human capital comprising of both health and education component in economic growth of both the nations. To achieve the first objective, the paper attempts to construct the Index of health and education both for India and China, also comparing it with South Asian region. Public health expenditure by government (PHE), out of pocket expenditure (OPE), Life Expectancy (LE) and Access to health care (HC access) are selected as indicators of health while educational attainment at least completed upper secondary, population 25+ (EDU) indicating the access to education, Literacy rate (LR) and number of patent applications by residents (PA) are considered as indicators of education. Both health and education indices are constructed using the Principal Component Analysis (PCA) method. The study examines the causality between the public health expenditure and economic growth for both the countries by deploying the Engle Granger Causality test using the Vector autoregression (VAR) model. Finally, an endogenous growth model is run selecting the appropriate variables, considering health and education indices as inputs. The study observes uni-directional causality between public health expenditure and economic growth, GDP granger causes PHE in both India and China. Both health and education index have positive impact on growth in India however the results of regression depict that the both health and education negatively affect the growth rate in China. The paper holds a great relevance in terms of policy implications highlighting the need for the developing nations to invest in human capital both health and education. It is crucial to comprehend the significance of accessibility of health and education by removing the political economy, making these facilities more inclusive.

Human Capital Development and Economic Growth in Developing Economies

The perceptible contribution of human capital in economic growth in an economy cannot be exaggerated. Human capital is the essential resource needed in every sector of an economy. Unfortunately, for many decades human capital development has been saddled with multifarious challenges that has hampered economic growth in many economies; with less developed economies suffering the effect of poorly developed human capital the most. This study was conducted to investigate the impact of human capital on economic growth in West Africa, specifically Ghana over a period of 40 years. The researchers used secondary data on human capital development and economic growth that was extracted from the economic data of Ghana Statistical Service, the World Bank, journals of economic studies and the Bank of Ghana Research Unit. The researchers applied ordinary least squares regression to estimate the models and also perform data analysis. In the end, it was found out that human capital whether it is developed or under developed has a tremendous impact on the growth of an economy both in the short and long term. The findings of this study hold important policy implications for countries in West Africa, specifically Ghana.