Human Capital Investment Research Articles

Hypothesis Test of Human Capital Investment Determinants on Institution’s Performance Using PLS-SEM Approach

Accelerating the quality of education institutions remains a priority for Malaysian Government as it forms the foundation for building a high caliber talent in the labor market. Focusing on improving the quality of universities one of the main concerns is to develop the human quality through increasing the quality and resilience of human capital as the enabler towards competitive global market. In general, this paper recognizes the findings on the role of human capital investment (HCI) determinants and their significant contribution to institution’s performance. It also emphasizes the roles of HCI in institution's success and survival in a highly competitive business environment as highlighted in The Twelfth Malaysia Plan (2021-2025) and Malaysia Education Blueprint 2015-2025. Human capital strategically contributes to the quality of academics in turn affects issues such as inefficient labor markers in achieving the greater quality of Malaysia's education system specifically. Hence, to analyze the contribution of determinants a theoretical model was constructed underlined by Human Capital Theory, Resource Based View (RBV) and Malcom Baldrige criteria. Then to obtain the feedback a survey consisting of sixty (66) items with a seven (7) Likert scale was used as the measurement instrument to gather the data from 309 lecturers in UiTM. Data then were analyzed using Structural Equation Modelling approach on the SmartPLS3 platform. The result explained coefficient of determination (R2) value of 66.9% suggested that the variance of institution performance could moderately be explained by HCI determinants where knowledge, skill and training positively influenced the performance of the institution.

THE IMPORTANCE OF PUBLIC SPENDING IN BRAZIL'S ECONOMIC DEVELOPMENT (2000 TO 2023)

Public expenditure can influence economic development by increasing public investment. This study seeks to analyze the importance of public investments in education, health, infrastructure and human capital in the process of economic development. The objective of the article is to address, from a theoretical perspective, the relevance of public spending in Brazilian economic development. The research showed that an efficient allocation of public spending in different strategic, innovative areas with potential disseminators can influence and influence the country's economic development.

Regional Development Policies in Afghanistan and Neighboring Countries: A Comparative Analysis

This essay explores the regional development policies applied in Afghanistan and its neighboring countries using a comparative qualitative analysis method. It focuses on infrastructure development, human capital investment, regional integration, and technological innovation policies. It compares development policies in China, Iran, Pakistan, and Afghanistan highlighting key projects which have fostered regional connectivity and economic growth. By comparing these policies, the essay evaluates how these initiatives have contributed to reducing regional disparities. This study aims to provide insights into how regional development policies can address Afghanistan’s socio-economic disparities and promote sustainable development. Despite notable successes, the research identifies ongoing challenges such as political instability, limited financial resources, and weak regional cooperation that impede further progress in Afghanistan. Key policy recommendations for Afghanistan include enhancing regional cooperation, investing in technological infrastructure, and developing human capital to achieve sustainable growth and stability.

Corruption and emigration from the Western Balkans: evidence from a dynamic system GMM model (2012-2022)

According to neoclassical models, migration takes place when there is a strong probability that individuals will recoup their human capital investments. As a result, workers typically move from low-income to high-income areas and the larger the expected income gap between areas, the higher the number of migrants. In countries where corruption is endemic, jobs are often secured through political connections and bribes. This will lead to a higher unemployment level as well as to a lower return to human capital. Consequently, a significant proportion of the population considers emigration as the only path to succeed. The present study is focused on the impact of corruption on emigration from six Western Balkan countries. A System Generalized Method of Moments is estimated to analyze migrant stocks in 28 receiving countries during the period from 2012 to 2022. We suggest that corruption can directly influence migration stocks in receiving countries.

THE REALITY OF DATE PRODUCTION IN ALGERIA AND ITS RELATIONSHIP WITH NATIONAL INCOME: AN ECONOMETRIC STUDY USING THE AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) MODEL DURING THE PERIOD 2000-2019

Objective: The objective of this study is to investigate the evolution of date production in Algeria and its impact on the country's national income (GDP) from 2000 to 2019. This research aims to analyze the short-term and long-term relationships between date production and national income, assessing the significance of agricultural policies in enhancing the productivity and economic contribution of the date sector. Ultimately, the study seeks to highlight the role of date production in diversifying Algeria's exports and contributing to sustainable economic growth. Theoretical Framework: This study explores the relationship between date production and national income in Algeria, using agricultural productivity theory, endogenous growth theory, export diversification theory, and the ARDL model. It aims to understand the impact of agricultural policies, human capital investment, and export diversification on Algeria's date production, highlighting the potential for economic diversification. Method: This study analyzes the relationship between date production and Algeria's GDP from 2000 to 2019, using the Autoregressive Distributed Lag (ARDL) model. Data sources include Algeria's GDP and date production data. The study uses unit root tests, bounds testing, and error correction models to estimate the relationship. Statistical software like EViews or R is used for analysis. Results and Discussion: The study reveals a positive relationship between date production and national income in Algeria from 2000 to 2019. The data suggests that agricultural policies have led to an upward trajectory in date production, while GDP has grown significantly. The study also highlights the importance of date production in Algeria's economy, particularly in diversifying exports. The long-term relationship suggests sustained investment in date production will yield continued benefits for national income. Research Implications: The study highlights the importance of supporting agricultural policies that enhance productivity in Algeria's date sector. It suggests broader export diversification strategies, infrastructure development, and economic development. Strengthening date production can create job opportunities, stimulate rural development, and contribute to food security. Future research should explore other agricultural products, climate change, and technological innovations to improve yields and sustainability in the sector. Originality/Value: The study explores Algeria's date production and national income relationship, providing insights for policymakers to diversify the economy beyond hydrocarbons and foster sustainable growth.

Health, economic and social impacts of the Brazilian cash transfer program on the lives of its beneficiaries: a scoping review

BackgroundThe Bolsa Família cash transfer Program (BFP) aims to break the poverty cycle by providing a minimum income to poor families conditioned on their investment in human capital (such as, education and health) and currently is the largest Program in the world in terms of the number of beneficiaries. Because there is a scarcity of reviews grouping studies on the impacts of the BFP, the objective of this scoping review was to identify and describe studies which evaluate the impact of the BFP on poverty, health, education, and other related outcomes.MethodsWe searched for quantitative, qualitative, and mixed-method articles that assessed the impact of the BFP on any aspect of the beneficiaries' lives between 2003 and March 2021. We included quantitative articles that used experimental, quasi-experimental or pre and post comparison designs. We excluded articles that analyzed impacts on political outcomes. There was no age restriction for the participants. The search was done in seven electronic databases.ResultsOne thousand five hundred forty-six papers were identified and 94 fulfilled the inclusion criteria. Poverty and health outcomes were the most common outcomes studied. We found consistent evidence of the positive impact of the BFP on poverty reduction, as well as employment outcomes. We also found positive impacts in relation to mortality rates for children and adults, school dropout and school attendance among children and adolescents, and violence related outcomes such as homicide, suicide, crime, and hospitalization. However, we also found some evidence that BFP increased intimate partner violence and gender stereotypes among women and no evidence of impact on teenage pregnancy.ConclusionsOverall, the studies included found that BFP showed positive impacts on most poverty, health and education outcomes. More studies are needed to confirm some results, especially about violence and stereotype against women as there were few evaluations on these outcomes.

Potensi Inovasi Indonesia di Tengah Bonus Demografi: Menjawab Tantangan Global

Indonesia’s demographic bonus, marked by a large working-age population, offers significant potential to drive economic growth and innovation. However, despite this demographic advantage, Indonesia faces challenges in workforce quality, investment in research and development (R&D), and technological infrastructure. According to the Global Innovation Index 2023, Indonesia ranks 62nd out of 132 countries in innovation. The low proportion of skilled workers and the lack of formal training programs within companies exacerbate the innovation gap. To fully leverage its demographic potential, Indonesia needs comprehensive policy reforms in education and R&D, increased investment in human capital, and strengthened technological infrastructure. Without these improvements, the demographic bonus risks turning into a long-term burden rather than a catalyst for innovation and economic growth.

The Alarming Exodus of Nigerian Professionals: The Devastating Consequences of Human Capital Flight and Migration on Nigeria's Economic Development

Purpose: This study rigorously investigates the phenomenon of human capital flight and migration in Nigeria, emphasizing the alarming exodus of skilled professionals and its profound implications for the nation's economic development. By contextualizing brain drain within the broader landscape of labour mobility, this work seeks to elucidate the factors driving the migration of educated individuals, particularly in critical sectors such as healthcare, education, and technology. Materials and Methods: Utilizing a mixed-methods approach, this research synthesizes qualitative data from academic literature, policy documents, and empirical studies, alongside quantitative analysis drawn from migration statistics and socioeconomic metrics. This robust methodological framework supports a comprehensive exploration of the interplay between migration, brain drain, and national development, facilitating a deeper understanding of the ramifications of skilled labour loss. Findings: The findings indicate that Nigeria's alarming exodus of professionals is intricately linked to a confluence of factors, including systemic corruption, deteriorating infrastructure, and limited employment prospects. This human capital flight significantly undermines the quality and accessibility of essential services in critical sectors, leading to substantial socio-economic disparities. Consequently, the loss of skilled labour constrains Nigeria's competitive edge and stunts its economic resilience and growth potential. Implications to Theory, Practice and Policy: This inquiry extends beyond descriptive analysis to propose a nuanced framework for understanding the theoretical implications of human capital flight and migration in developing economies. It underscores the urgent need for policymakers to undertake comprehensive strategies that address the root causes of this phenomenon, fostering a conducive environment that retains talent while enhancing human capital investment and innovation capacity.

THEORIES OF ECONOMICS AND THE PHILOSOPHY OF ALTRUISM IN “TWINNING” THE EGYPTIAN TOURISM AND TEXTILE INDUSTRIES

Theories of economics and the philosophy of altruism in “twinning” this paper studies the endogenous formation of interfiling altruism. The theory suggests that incentive to foster tourism and textile industries is positively related to efficiency gains from more human capital investment in the more gifted tourism and textile industries. The empirical analyses explore the plausibly exogenous within-twin difference in for the development of Matrouh governorate, Egypt, consistent with the theory, the estimation results show that a larger difference in tourism and textile industries. Leads to more intensive you win-to to be-win practice to tourism and textile industries and that when such practice is more intensive, the heavier tourism and textile industries obtains more investment relative to the other tourism and others industries as the philosophy of altruism in “twinning”.

Indonesian SMES and Global Market Penetration: The Effects of Human Capital Investment, Government Role, and Technological Progress

MSMEs play a significant role in supporting the country's economy as they account for 60.5% of GDP. MSMEs confront a number of difficulties related to financing, supply, and market demand that need to be given more consideration in order to support their entry into the global market. The purpose of this study is to examine how government involvement, technology advancement, human capital investment, and entrepreneurial orientation affect MSMEs (micro, small, and medium-sized firms) in Indonesia and their internationalization strategies. This study uses a quantitative approach with data collection techniques using a Likert scale questionnaire. Then descriptive analysis and Partial Least Squares (PLS) are used to analyze the data. The study's findings show that technical change significantly affects MSMEs' internationalization strategies; in contrast, entrepreneurial orientation, investments in human capital, and the role of the government are not as significant in this regard. However, this research offers stakeholders improved guidance for bolstering MSMEs' success and expansion in global markets, as well as for widening the gap in the global MSME market to promote Indonesia's sustainable economic growth.

Evaluating SIKS-NG's Performance in Jabon District Social Welfare

Background: The integration of information systems into social welfare initiatives is increasingly important in rural areas. Specific Background: This study examines the effectiveness of the Next-Generation Social Welfare Information System (SIKS-NG) in a specific village, highlighting the role of human resources and supporting infrastructure. Knowledge Gap: Previous research emphasizes the need for trained personnel but lacks comprehensive analysis of resource adequacy. Aims: The research assesses the effectiveness of SIKS-NG in updating social assistance data, focusing on operators and available resources. Results: Findings reveal that effective implementation relies on competent operators and sufficient technological resources, such as computers and smartphones. Novelty: This study offers a comparative analysis with prior research, highlighting improved resource provision. Implications: The results emphasize the need for local governments to invest in human capital and technology to enhance social welfare outcomes and address poverty effectively. Highlights : Effective implementation of SIKS-NG relies on trained operators. Adequate technological resources, including computers and smartphones, are essential. Local government investment in human capital enhances social welfare outcomes. Keywords: Social Welfare, Information System, SIKS-NG, Rural Development, Human Resources

Public spending and sustainable economic development

Purpose Despite the increase in public spending by Sub-Saharan African (SSA) Governments in a bid to foster the growth of human capital and sustainable development, they continue to experience a very slow rate of progress. This study aims to investigate the impacts of public spending on sustainable economic development in SSA. Design/methodology/approach The study adopts the system generalized method of moments to account for cross-sectional dependence and endogeneity for 38 SSA countries from 1996 to 2019. Findings The findings indicate that public spending inhibits sustainable economic development while human capital enhances sustainable economic development in SSA. Furthermore, the study equally reveals that the development-inhibiting role of public spending is modulated through human capital and governance quality. Public spending interacts with human capital and governance quality to produce negative net effects and positive synergy effects, respectively. Originality/value Based on these findings, the study suggests that governments in SSA countries should discourage heavy dependence on public spending. Policies that provide a framework for financial incentives in the domain of health and education should be encouraged to increase investment in human capital.

Client restatement announcement, audit office human capital investment, and audit quality improvements

This paper examines audit offices’ human capital investment in response to client restatement announcements and the resulting effects on audit quality and audit office client base. We find that audit offices attempt to acquire human capital and talent by posting more audit-related job positions just after a client announces a restatement. The increase in job postings follows restatements with more negative announcement returns and restatements of annual financial statements, and is concentrated among more senior and experienced positions. Importantly, the increased job postings are not driven by replacement hiring due to individual auditor departures and reflect more auditors joining the office. These human capital investments reduce future client misstatements and losses in client portfolios, indicating improvements in actual and perceived audit quality. Audit offices are also more likely to replace audit managing partners and prevent the signing partners of the misstated financial statements from signing new audit reports after restatement announcements.

Unveiling the shadows: School bullying and students' ability erosions in Chinese compulsory schools

Drawing upon data from the National Children's Study of China, this research investigates the school bullying victimization and its associations with the ability erosions among students in Chinese schools. Three key findings emerge. First, results suggest that the primary factors affecting bullying victimization mainly include authoritarian parenting, limited positive social interactions on campus, adverse experiences, and exposure to teacher and peer smoking. Second, estimates indicate that bullying victimization is significantly associated with ability erosions, particularly among students from relatively advantaged backgrounds. The further Oster's test, falsification test, and reverse causality check confirm the validity of the associations and suggest some causal effect of victimization on the student outcomes. Lastly, the Oaxaca-Blinder decomposition shows that lower human capital investments derived from social interactions are the most significant contributors to the ability erosion linked to bullying victimization. These findings highlight the critical importance of social interactions both at home and in schools.

Weathering the Storm: Unravelling the Influence of Climate Change Risk Exposure on Firms’ Human Capital Investment

AbstractBuilding on agency theory, this study examines the impact of climate change risks on corporate investment in human capital as a key factor of production. Using a sample of US listed firms for the period 1989–2017, we find that firms respond to the growing climate risks by enhancing efficiency in human capital investment, primarily through a reduction in over‐hiring, consistent with our conjecture that firms adopt more prudent and efficient recruitment strategies in reaction to higher climate risks. Cross‐sectional analyses suggest that such an improvement in human capital investment decisions is more salient for firms with poor corporate governance, less intellectual capital and facing greater industry competition and less pronounced for firms with more resilient assets against climate change. By exploiting two exogenous events that cause significant increases in climate risk as quasi‐natural experiments, we conduct difference‐in‐differences analyses and find consistent evidence that the firms engage in more efficient human capital investment in response to both the physical and regulatory risks of climate change. Collectively, despite the overwhelming negative impact of climate change, our study reveals that such risks can play a disciplinary role in promoting more efficient managerial decisions on human capital investment.

Human capital investments and income inequality in Nigeria: Does institutional quality matter?

The study examines the impact of human capital and institutional quality on income inequality from 1990 to 2021. This study adopts the Kuznets model as its theoretical framework. The unit root test revealed a mixed stationary in the variables which prompts the choice of Autoregressive Distributed Lag of which its bound test result shows that there is a cointegration in the variables. The long-run results show that government expenditure on education, government expenditure on health, government effectiveness, and domestic credit to the private sector have a positive but not significant effect on income inequality while in the short-run, government effectiveness and domestic credit to the private sector have a positive but not significant impact on income inequality. Moreover, only government expenditure on education affects income inequality in the Nigerian economy positively and significantly. Based on the findings revealed, the study recommends that the government should by all means and economic resources increase the budget of human capital to enhance the reduction of income inequality in the country and place more emphasis on providing education grants and incentives that encourage the reduction of brain drain.

The impact of human capital investment on the wages among Northern Border University graduates

The impact of human capital investment on the wages among Northern Border University graduates

Research on the Decision-Making Mechanism of Human Capital Investment in the Behavior of “Returning to School for a Master Degree”—An Interview Analysis Based on Grounded Theory

Currently, it has become increasingly common for individuals engaged in social work to pursue a Master’s degree as part of their professional development. Following the qualitative research approach of grounded theory, this study conducted in-depth interviews with six graduate students majoring in education from local universities and performed a three-level coding analysis on the collected data. The motivations behind social candidates’ pursuit of a Master’s degree are primarily driven by material needs, spiritual aspirations, and other factors. Drawing upon the human capital theory, this study examines the investment decision-making behavior of this particular cohort. The decision mechanism underlying this behavior is as follows: the anticipated income level associated with a master’s degree surpasses the current income level; the expected return on investment outweighs the investment cost; while human capital investment in graduate school entails minimal risk, its return rate exceeds that of other investments; substantial hidden benefits are derived from investing in human capital. The research findings can serve as a valuable reference for the reform and adjustment of graduate enrollment and training in higher education institutions.

The Clan Imprint Within Gender Wage Gap: Evidence from China

Clan culture plays a pivotal role in shaping gender disparities in individual choices. This paper, utilizing data from Chinese General Social Survey 2013, employs genealogy density as a proxy variable for clan culture. The results suggest that clan culture significantly promotes an increase in male wage, while no significant impact on female wage, consequently widening the gender wage gap. Notably, patrilineal clan exacerbates gender differences in human capital investment, reinforces gender identity, and intensifies social trust disparities, thereby perpetuating the escalation of gender wage inequality. Conversely, the internet, serving as a primary vehicle for modern gender equality ideas, mitigates the positive effect of clan on gender wage disparity. Further investigation reveals that the positive impact of clan culture on gender wage gap diminishes with an upward shift in wage distribution and narrows with generational transitions. These findings extend the cultural explanation pathway for gender wage gap.

On the Way to Net Zero Emissions. Can Environmental Tax be the Game Changer? The Vise Grad Group Evidence

Today, protecting the environment is a top issue for global policy. In essence, the literature has identified several macroeconomic problems as factors in environmental deterioration. The purpose of the investigation was to explore environmental deterioration (EVD) and energy consumption (ENC) by Vise grad regions. Environmental taxes (ENTX) and carbon taxes have been proving to be a significant factor in carbon mitigation. The analysis was carried out for the period 1994-2021, employing the fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS). The empirical evaluation indicates that ENC had a positive while ENTX had a negative nexus with EVD for the Vise grad nations. Similarly, the moderating role of ENTX*ENC – EVD exhibited an inverse affiliation. In the long run, the dependence on non-renewable energy appreciates EVD. However, effective policy implementation of ENTX will lead to quality of the environment. The empirical results have shown that ENTX can be employed to control the demand and utilization of coal, gas, and nuclear in the Vise grad regions. This research offers policymakers and government organizations in these areas a reference point for their investments in more eco-friendly technology, human capital, urbanization, trade openness, and appropriate environmental levies to demonstrate the quality of the environment.