Level Of Human Capital Development Research Articles

Human Capital Development, Remittances, and Poverty in Central and Eastern European Countries: What Do the Data Tell Us?

The study investigates the impact of human capital development on poverty in Central and Eastern European Countries (CEECs) using dynamic generalized methods of moments (GMM), fixed effects, random effects, and pooled ordinary least squares (OLS) with panel data ranging from 2008 to 2019. Using the same panel data analysis methods and data set, the study also explored the influence of the complementarity between human capital development and personal remittances on poverty in CEECs. What triggered the investigation into this topic is that the available literature on the subject matter is mixed, divergent, and very much conflicting. The lag of poverty, remittances, the interaction between human capital development and remittances, trade openness, unemployment, and partly financial development significantly increased infant mortality rates in CEECs. On the other hand, human capital development, infrastructural development, and partly financial development were found to have reduced infant mortality rates. These results mean that human capital development, financial development, and infrastructural development reduced poverty in CEECs during the period under study. Central and Eastern European Countries are therefore urged to craft and implement financial development, infrastructural development, and human capital development enhancement policies to combat poverty. Future empirical research could also investigate at what threshold the level of human capital development, financial and infrastructural development would poverty be significantly reduced in CEECs.

Geography of Human Capital in Republic of Kazakhstan: a Comparison Between Regions

In the context of the transition of the national economy of the Republic of Kazakhstan to an innovative type of development, the issues of formation and development of human capital are becoming increasingly important. This research is devoted to assessing the regional differentiation of human capital in Kazakhstan and identifying the reasons that shape it. On the basis of factor analysis, a system of statistical indicators of human capital development level was developed. Because human capital is formed throughout the life of the population, the study was carried out according to the stages of accumulation, formation, and use of this capital. This article provides an assessment of human capital main indicators in the regions for 2010-2020. A method for measuring human capital based on quantitative and qualitative indicators of human development using the index method is proposed. The methodology includes economic, social, demographic, and environmental indicators of human capital. An integral index of the human capital of Kazakhstan’s regions has been developed, which includes four components and allows one to compare the level of human capital in regions of Kazakhstan. The typology of regions according to the level of human capital development is presented. A geodatabase of regions’ human capital has been created. The integral index of the human capital of Kazakhstan’s regions allows identifying territorial disproportions. Based on the results of the research, conclusions were drawn about the relationship between the level of human capital development and the level of socio-economic development of the Kazakhstan regions.

Высшее образование в субъектах РФ: формирование новой структуры сети образовательных организаций

Most of the issues related to the achievements of science and the improvement of the higher education system are closely related to the development of human capital and the strengthening of human resources. Higher education plays a major role in the formation of a person, the development of personality, the acquisition of knowledge, skills, skills and competencies. The professional capabilities of teachers in universities and the availability of high-quality education depend on knowledge and skills, that is, on the level of human capital development. It is on a sufficient number of highly qualified teachers that the training of specialists for the real sector of the economy, the social sphere, the development of the scientific and industrial potential of our country and its leading positions depend

Человеческий капитал организации как драйвер совершенствования проектного управления

The subject of the study is the human capital of an organization in the form of the competencies of its individual representatives. The purpose of the work is to determine the dependence of successful project management on the level of human capital development of the organization and its individual representatives. It is established that the successful work of an organization depends not only on its capital, but also on the development strategy and methods of its implementation. One of the main methods of implementing an organization's strategy is project management, for the qualitative implementation of which it is necessary to have employees with appropriate competencies. The article discusses the results of a study conducted by the national Association of project Management "SOVNET" to identify the most important key indicators for the elements of the competence "PEOPLE". It is established that the manager must demonstrate openness and responsibility in interacting with people on whom the magnitude of the human potential of the organization depends. According to the results of a survey of managers and employees of small and medium-sized businesses to determine the level of openness of communications in organizations and the quality and comfort of interaction of their employees, the relationship between them and the human capital of the organization was revealed. A trend has been established that shows the correlation of the inverse dependence of a weak level of responsibility and openness on the development of the organization's human capital. The dependence of openness and responsibility in matters of interaction with people on the level and quality of human capital development of the organization is traced. Conclusions are drawn about the correlating direct dependence of the growth of the level of responsibility and openness on the increase in the level of development of the human capital of the organization, as well as the need and possibility of improving the quality of project management due to the growth and development of the human capital of the organization.

ІНТЕНСИВНІСТЬ РОЗВИТКУ ЛЮДСЬКОГО КАПІТАЛУ В РЕГІОНАХ УКРАЇНИ

The article substantiated the need to use the methods of multidimensional statistics to assess the intensity of human capital development. Scientists' approaches to assessing the level of human capital development have been studied and the impossibility of using the order of generalized indicators measured in the scale to assess the intensity of development of this capital has been substantiated. To perform this assessment, it is proposed to use the methods of multidimensional statistical analysis and calculate specially designed chain and basic integrated pace indexes of development, which are a generalization of indicators of chain and base growth coefficients on multidimensional time series. The method of assessing the intensity of development of human capital of the region, which consists of two steps, is considered. At the first step, the primary indices of the rate of development of human capital are calculated, and on the second – the integral pace indices of its development. Moreover, the priority of primary indicators and the division of these indicators into stimulants and destimulators are taken into account. Using the method considered in the work, the value of chain and basic integrated pace indexes of human capital development in Ukraine and its regions for the period 2013–2019 was calculated. The results of the calculations showed that in Ukraine and most of its regions in 2014, compared to the previous year, the level of human capital development decreased, which may be the result of Russian military aggression in Crimea and eastern Ukraine. In the future, by 2017, the value of this generalized indicator increased and then began to decline again. The basic integrated pace index of human capital development for Ukraine in 2019 compared to 2013 was 1.06. The value of this indicator is more than one for this period was observed in 18 regions of Ukraine. The results of the analysis should be used by regional and national management bodies to develop a strategy for the development of regions, improve the distribution of state financial resources, and increase the level of human capital development in these regions.

Assessment of the level of human capital development in the agricultural sector: indicators and their systematization

The paper presents a systematization of indicators of human capital development in the agrarian sector. Three groups of indicators have been identified that allow a comprehensive approach to the analysis of quantitative reproduction of human capital, i.e. social indicators, socio-economic indicators and indicators of development of migration processes. The authors consider human development index (HDI) as a tool for assessing the quality of human capital that characterizes the level of human capital development in different countries and regions of the world, as well as determine the peculiarities of its application, as well as limitations and assumptions of research results obtained with this tool. The criteria have been determined for evaluating the efficiency of strategy being implemented in the agrarian sector. They make it possible to assess the relationship, interdependence and impact of the strategy both on the development of individual components of human capital system and the economy of the Agro-Industrial Complex as a whole. It has been established that state development strategies should be assessed according to their social and economic efficiency.

Modification of the World Bank Human Capital Index calculation methodology for Russian regions

In this paper we modify the methodology for calculating the Human Capital Index that is used by the World Bank. This modification is required due to the inapplicability of the original methodology to the analysis of human capital in the regions of Russia caused by the absence of some of the original data in Russian statistics. The article analyzes the method of calculating the Human Development Index, which is used to estimate human capital in the regions of Russia, and shows the main problems of its application. First of all, these problems are associated with the excessive dependence of the final index on GRP per capita. The main goal of this research is to compare human development of Russian regions via calculating Human Capital Index, which includes modeling based on three subindices — survival, education, and health scores. Due to the complete or partial absence of some of the data necessary to calculate the final index for Russian regions, their proxies were used. The major changes had to be made in the methodology for calculating the education subindex. The main obstacle to the use of the World Bank methodology without changes is the lack of open data that could evaluate the quality of school education in the region. The results were tested on the data of the regions of Russia for 2019. The results made it possible to compile a ranking of Russian regions by the level of human capital development. The ranking of regions with the best development of human capital was headed by St. Petersburg, Kaliningrad region and Moscow. The anti-ranking regions were Dagestan, Chechnya, Ingushetia, Buryatia and Tyva. A strong dispersion between regions by the level of human capital development was shown. The main contribution to the differentiation of regions according to the constructed index is made by the education subindex. The conclusion is made about the limits and possibilities of applicability of this method in Russian conditions.

Формирование человеческого капитала: российские условия

The subject of the study is the peculiarities of the formation of human capital. The purpose of the work is to develop theoretical ideas about human capital and identify the conditions for its formation and use in the Russian economy. Thanks to the analysis of approaches to measuring human capital, it has been established that the policy of forming human capital is determined by the initial standard of living of society, the state of education, science, medicine of the country. At the same time, a high level of human capital development, as well as large investments in it, do not guarantee economic growth, forming only a condition for its provision. It is determined that the standard methods of assessing human capital through the use of the human development index or the amount of investment in a person are very truncated ways of measuring it, inherited from the Western economic tradition. A more capacious and meaningful approach to the assessment of human capital seems to be the use of the doctrine of human potential, which assumes not only an analysis of the income received from investments in a person, as in the case of the application of the doctrine of human capital, but takes into account the potential capabilities of a person in changing conditions, accumulated experience and knowledge, summarily composing the systemic quality of people. In this regard, the idea of human capital looks like some part of the systemic doctrine of "human potential". However, it has been revealed that the assessment of the human development index (life expectancy, per capita income and level of education) does not allow revealing the full set of advantages of this system doctrine. It is concluded that for the Russian economy, the formation of human capital cannot be considered outside of the task of creating a new fixed capital and activities involving the possession of advanced knowledge.

Domestic Resource Mobilization and Human Capital Development in Sub- Saharan Africa

This study investigates the nexus between domestic resource mobilization using aggregated and disaggregated taxes, and human capital accumulation as measured by the index of human capital and total factor productivity. The study explores panel Autoregressive Distributed Lag. We further explore the linear and nonlinear effects of taxes on human capital accumulation. The results from the scatterplots show that taxes at aggregate and disaggregated levels positively correlated with the two measures of human capital. On the linear analysis, the impact of aggregated and disaggregated taxes is largely negative under the index of human capital but largely positive under the second measure in the short-run. However, the long-run results indicate that aggregate and disaggregated taxes significantly amplify human capital accumulation. On nonlinearity, there is no presence of human capital laffer curve (HCLC) in the short-run under the two measures of human capital. However, there is presence of HCLC in the long-run. The net effects results show that some taxes (such as indirect taxes, taxes on goods and services) are distortionary in improving the level of human capital development while some taxes (such as total tax, direct tax, taxes on income, profit, and gains) can distort human capital development in the SSA region.

Cognitive Returns to Having Better Educated Teachers: Evidence from the China Education Panel Survey.

Teachers’ own level of human capital development is commonly believed to be deterministic for the quality and effectiveness of their instruction and management in the classroom. Yet, there still exists an international debate on whether better educated teachers contribute to students’ cognitive development. Leveraging a random class-assignment subsample (N = 3436) from a nationally representative teacher-student linked dataset in China, this study reassesses the ongoing contention regarding the value of teacher education. By linking differences in teachers’ own educational attainment levels across different subjects of instruction to variation in seventh grade students’ Chinese, Math and English test scores using student fixed-effect models, this study quantifies the cognitive returns attributable to better educated teachers, in student learning terms. Findings show that teachers with at least a bachelor’s degree contribute substantially to student learning compared to those who are less qualified, by as much as 0.069 SDs or about two additional months of learning over a typical academic year. Additional sensitivity analyses suggest that this observed effect is robust to model specifications, and is consistent for students from different backgrounds.

Application of the CORAL GMDH Algorithm for Modeling and Forecasting the National Income of Ukraine

CORAL GMDH is a method of the inductive approach. In this article it is used for modeling and forecasting socio-economic processes. Here the CORAL GMDH algorithm is applied to solve three problems: recovery of missing data, modeling of macroeconomic indicators, and forecasting the gross national income (GNI). Also, the CORAL GMDH algorithm is used to build models in the problem of modeling the dependence of GNI on socio-demographic indicators and develop recommendations on how the state can influence the level of human capital development in the country by influencing certain socio-demographic indices. The results of modeling for Ukraine, Belarus, and Poland are compared.

Формирование индикаторов оценки эффективности использования человеческого капитала в пищевой промышленности

Introduction. No standard methodological approach has yet been developed for an objective assessment of the value of the human resource from the position of its effect on the results of the related industry. Food industry is a strategically important branch of the National Economy. It has its specific requirements for labor resources, which can be used as indicators of their effective use in the production process. The on-going transformation of the food industry structure requires customization of such indicators. The present research objective was to form a group of indicators to assess the efficiency of the use of human capital in food industry.
 Study objects and methods. Food industry ensures domestic food security and provides the rational use of all resources in the production process. The research featured indicators of human capital assessment adopted in international financial reporting, as well as methods of statistical and mathematical data analysis.
 Results and discussion. The present article introduces a new methodological approach to determine the impact of human capital on the socio-economic efficiency of a food industry enterprise. The calculation of the integrated human capital index was based on statistical indicators of demand and the intellectual component in the industry, e.g. indices of employment, education, and industrial production. According to the proposed approach, the indicative function was performed by an integrated indicator of socio-economic development, which included indices reduced to a comparable form. The indices reflected the ecological, economic, and social efficiency of food production. The method was tested at a local cereal-producing company. An average increase in costs for the development of human capital by 1% increased the indicators of the socio-economic development from 4 to 5%. The objectivity of the assessment depended on the provision of a given level of human capital development and the choice of target criteria for the development of the food industry.
 Conclusion. The proposed method can facilitate labor management decisions in food industry. The list of indicators can be expanded in accordance with the objectives and installations of scientific research.

Education – As One Main Form of Human Capital

Education is the driving force for economic development and raising living standards. As an active factor of production - a sophisticated person determines the socio-economic development of a country. Truly, there are many factors hindering the rapid development, of which solution in a relatively short time is impossible (f.ex. returning of occupied territory); However there exist other kind of problems (development of infrastructure in a short time, cost saving on maintaining the state bureaucracy and leaving more money for the economy; having reliable money in circulation; an effective social assistance system, etc.), which can be eliminated in a short time. Among such important problems, the most important is to raise the level of human education, so, the qualitative level of human capital development. In order to make the country attractive in the conditions of rapid competition, it is necessary to create an innovative, creative atmosphere for the introduction of the updated education system, for the improvement of human capital. That should ensure the continuous update of the knowledge obtained at the higher Education institutions in parallel with the scientific and technical progress improved level. All this requires a lot of private initiatives, less regulation by the state and in the right direction of finances, reasonable and targeted spending. In Summary, the goal of the ongoing education reform is to make education not just as as a business but to make it more as a public good. Since education is the most significant sphere for accumulation of human capital and dissemination of knowledge in modern digital economy, it is necessary to increase the role of the state in improving this field. Keywords: Human Capital, Investment, Education, Competition.

Convergence Triggers in Africa: Evidence from Convergence Clubs and Panel Models

AbstractThis paper investigates the formation of convergence clubs and examines the drivers of growth convergence in Africa by accounting for individual heterogenous effects and establishing transitional paths. We particularly employ the sophisticated log t test to identify underlying convergence clubs and use LSDVC as a benchmark model for analysing the drivers of convergence. We also apply the System Generalized method of moments (GMM) model for sensitivity purposes. Our results reveal four core convergence clubs; seemingly characterised by the measures of institutional stability with distinct transitional paths. We consequently highlight the importance of initial conditions, human capital and institutions in the formation of convergence clubs. Thus, the paper provides insights into the adoption of differentiated development policies consistent with the specific conditions of African countries with the integration agenda driven by accelerated levels of human capital development and technological progress.

ЛЮДСЬКИЙ КАПІТАЛ І ЙОГО РОЛЬ В ЧЕТВЕРТІЙ ПРОМИСЛОВІЙ РЕВОЛЮЦІЇ

The development of a modern economy, in the context of the fourth industrial revolution, is impossible without the accumulation and development of human capital, since the foundation of the transformation of the economic system in an innovative economy is human capital. In this regard, the level of development and the efficiency of using human capital are of paramount importance. This article attempts to assess the role of human capital in the fourth industrial revolution. In the future, human talent will play a much more important role in the production process than capital. However, it will also lead to a greater division of the labor market with a growing gap between low-paid and high-paid jobs, and will contribute to an increase in social tensions. Already today, there is an increase in demand for highly skilled workers, especially in high-income countries, with a decrease in demand for workers with lower skills and lower levels of education. Analysis of labor market trends suggests that the future labor market is a market where there is simultaneously a certain demand for both higher and lower skills and abilities, combined with the devastation of the middle tier. The fourth industrial revolution relies heavily on the concept of human capital and the importance of finding complementarity between human and technology. In assessing the impact of the fourth industrial revolution, the relationship between technology, economic growth and human resources was examined. The analysis was carried out in terms of three concepts of economic growth, technological change and human capital. Human capital contributes to the advancement of new technologies, which makes the concept of human capital an essential factor in technological change. The authors emphasize that the modern economy makes new demands on workers; therefore it is necessary to constantly accumulate human capital, develop it through continuous learning, which will allow the domestic economy to enter the trajectory of sustainable economic growth. The need to create conditions for a comprehensive increase in the level of human capital development is noted.

НЕМАТЕРІАЛЬНІ АКТИВИ ТЕХНІКО-ТЕХНОЛОГІЧНОГО РОЗВИТКУ

The article analyzes the existing theoretical and methodological approaches to the researches of factors of economic growth and shows the influence of these factors on the stimulation of technical and technological development. Based on the analysis of models of economic growth with endogenous technological progress and conceptual approaches of Schumpeterian direction, it is established that the most important area of high economic growth is the R&D sector, where innovations are born and commercialized. The role of human capital in maintaining the functionality of this sector is demonstrated, as well as in ensuring high rates of technical and technological development. A separate factor that contributes to the strengthening of the innovative component of the latter is the ability of innovators to set barriers to the dissemination of information about new types of equipment, technologies and methods of organization of production. Human capital, R&D, innovation, and GDP per capita of twenty-five countries has been surveyed, and we found that individual country’s position by human capital development and innovation is not always the same. To explain the lack of a linear dependence between human capital development and innovation, a number of economies have involved the phenomenon of intangible assets and studied technological and technological development based on the positive externalities and knowledge spillovers. The specifics of scientific knowledge as a key intangible asset that contributes to technical and technological development are shown, its main types are considered, taking into account the possibility of its rapid spread from rich countries to poor ones. The discrepancy between the indicators of the levels of human capital development and innovation in a number of economies is explained by the dominance of tacit knowledge in modern conditions, which requires the creation of network organizations and institutions of interaction in the scientific sphere.

Justification of a new paradigm of interaction between human capital and economic growth in the innovative economy

. Human capital theory serves as the scientific basis for development of innovative economics. It is human capital that determines the maintenance of quality parameters of economic growth providing for efficient development of economics of modern states. The purpose of the authors is to justify theoretical and methodological expositions of human capital management in the innovative economics. The latter is regarded as an economic system based on the innovative activity of the business entities and individuals, on the permanent technological enhancement. Such an economic system is developing due to on-going generation of new knowledge. The authors present the results of their copyright study of genesis of system human capital paradigm of innovative economics as a research concept which implements and concretizes a holistic approach to revealing the patterns and causal relationships within the system of human capital of innovative development. The method of the study is based on using monographic method, statistical methods, charts, tables, graphs and other means to visualize the findings. As a result, the authors ascertain the shift in the economic science from classical understanding of how economic growth is impacted by education in innovative economics to considering economic growth as the main driver for development of education. The authors adduce the results of statistical analysis of interrelation between the volumes of technological innovation expenditures, the aggregate level of organizations’ innovative activity and the index of human development on the international level. By means of nonparametric methods the authors discover that the development of human capital, educational potential and the level of innovation development in the regions of Russia are moderately interrelated. The authors come to the conclusion that Russian economics is unique in comparison with other countries due to the combination of the high level of human capital development and low pace of economic and innovative development. As a result, they have found out that, considered as part of human capital management providing for innovative development, investments in education can be more efficient only if science, education and business integrate to train their employees within the context of the new paradigm of interrelation between human capital and economic growth in innovative economics in which investment in innovation and technology is regarded as the main driver of development of education.

Leveraging foreign direct investment for sustainability: An approach to sustainable human development in Nigeria

The paper assesses the interconnections between FDI and human capital development in Nigeria over the period 1981–2018. The analysis is carried out with the use of both non-linear autoregressive distributed lag (NARDL) and linear ARDL bounds test approach to cointegration, and VECM Granger causality technique. Findings reveal that the effect of FDI on human capital is found to be insignificant in the long run, while it is significant in the short run. However, following the asymmetric link, the empirical evidence reveals that a rise in FDI inflows to a certain rate, in the long-run, could result in a significant increase in the level of human capital development, suggesting that the magnitude of inward FDI matters in the economy. This further implies that as FDI inflows require sound technical know-how, and more skilled labour to work with or adapt to more advanced technologies, such could draw attention to improved human capital. Results also indicate that there is unidirectional causality between FDI and human capital in the long run, which runs from human capital to FDI, suggesting that the quality of human capital matters for sustainable leverage and attractiveness of FDI inflows. By implication, it is critical to adopt policy measures that could engender the sustainable development of human capital by the government, while the underlying structural bottlenecks and protracted state of insecurity that could deter foreign investors are accorded significant attention.

Internet adoption and financial development in sub-Saharan Africa

Information and communications technology (ICT) adoption, and its penetration and use, in sub-Saharan Africa (SSA) have steadily grown since the turn of the century. Subsequently, studies have sought to investigate several of its benefits, particularly for economic growth and entrepreneurial activities. However, little attention has been paid to SSA, human capital development and economic freedom within studies on ICT and financial development. Using data from the Global Financial Development and the World Bank Development Indicator databases for the period 2000–2016 on 42 countries in SSA, we found evidence of the positive impact of internet use on different measures of financial development. Further analysis reveals that sub-samples of SSA countries differ on their levels of human capital development and economic freedom. Our results are robust to different estimations and specifications that account for heteroscedasticity in our sample and potential endogeneity. Implications of the study are also highlighted.

The model of human capital development with innovative characteristics in digital economy

In the conditions of digital transformation of the economy, the structure of human capital and the instruments of human capital development are changing. The development of human capital management system in the conditions of digital economy development is possible only with the high quality of human capital and the high level of knowledge. A system model is developed, which is represented by the subsystems “The Structure of Human Capital”, “Instruments of Human Capital Development”, “Organizational and Economic Instruments of Human Capital Management”, taking into account the peculiarities of human capital management in the digital economy. To determine the ways to improve the quality of human capital structure and to assess the effectiveness of human capital development tools, an approach to assessing the efficiency level of human capital development, including indicators of qualitative and quantitative assessment, is presented. This will make it possible to take more fully into account all aspects of the management of intellectual resources in the digital economy. In order to be able to classify enterprises by the efficiency level of human capital development with innovative characteristics on the basis of open financial information, machine learning model was created and classification rules were defined.