Positive Effect Of Human Capital Research Articles

Effect of Human Capital on Economic Growth in South Africa: an ARDL Approach

This study tests the influence of human capital expressed by spending on education on South African GDP during the period 2021-2000, depending on the self-regression model of the distributed time gaps (ARDL). This work aimed to study the effect of Human Capital (H) on GDP per capita in South Africa during the period 2000-2021, based on the autoregressive distributed lag (ARDL) model. The study results concluded that there is a long-run equilibrium relationship between GDP and the independent variables (physical capital K, labor force L, and Human Capital H). The results revealed that there is a positive effect of Human Capital on GDP (moral for K) in the short run, and an adverse effect of Human Capital on GDP in the long run due to the interest in employing internationally qualified professionals, contributing to an increase in unemployment and indigenous workers’ health and well-being rates. These findings are consistent with the H-related literature. Likewise, from the results of the short-run test, L is the largest among the independent variables by (0.65), K by (0,086), the least of which is H with a coefficient of (0,029). This indicates that H (skilled workforce) in South Africa does not play an important role in the individual GDP in South Africa compared to the regular labor force due to its large size compared to the qualified labor. With regard to the long-run results, there is a negative impact of H on the local product due to the fact that the interest in supporting the qualified workforce coming to South Africa contributed to increasing unemployment rates and influencing the luxury of indigenous workers in South Africa. The study recommended the necessity of supporting local skills. The support must include enhancing skills for all three categories of workers (skilled, semi-skilled, and unskilled).

Human capital as a fundamental factor in innovative transformations and management at the regional level

The article considers the process of introducing innovative technologies and modernizing production. Asystematic analysis of national economies during the modernization of technological structures is presented. It is substantiated that the condition for the emergence of a stable demand for innovations is the process of total modernization of production. Historically, the increased efficiency of the work of innovative active local networks based in regions, which are characterized by a certain set of favorable conditions for innovative activity, has been proven. The need is identified for the distribution of the interstate system of suppliers of components for manufactured products on the one hand and the zoning of various elements of production on the other. The importance of innovative changes in the regional economy, the need for industrial reorganization in accordance with the principles of Industry 4.0 and the subsequent internal reorganization of the enterprise, especially in the approach to human capital, are shown. Fundamentally different processes in the study of digitalization and digital transformation are revealed. From a historical and economic point of view, the concept of human capital is considered from the position of a determining factor of an innovative economic system. The classification of human capital has been expanded, taking into account the regional level. The characteristics of positive and negative human capital are revealed. It has been proved that in order to achieve a positive effect of human capital, it is necessary to initially form an innovative strategy that includes algorithms for investing in human potential. The features and structure of human capital are revealed with the addition of the element of possessing environmentally significant information. The analysis of academic sources significant in economics, offering various conceptual approaches to the study of human capital, has been carried out.

The effect of human capital on energy consumption: Evidence from an extended version of STIRPAT framework

Human capital is an important aspect of energy consumption, exerting crucial effects on economic growth, technological progress, and economic restructuring. This paper presents an in-depth investigation of the effect of human capital on energy consumption using an extended version of the Stochastic Impacts by Regression on Population, Affluence, and Technology framework. The estimated results using a panel dataset covering China’s 30 provincial regions during the period 1997–2018 and applying fixed effects with instrumental variables and the generalized method of moments indicated that an increase in human capital significantly drove energy consumption. A 1% increase in human capital increased energy consumption by approximately 0.3%. A two-step channel analysis to test scale, technical, and structural effects revealed that the positive effect of human capital on energy consumption is based primarily on the scale effect. However, highly educated human capital alleviates the energy pressure of this effect. In contrast to the scale effect, both the technical and structural effects of human capital reduced energy consumption, and this reduction is primarily correlated with enterprises’ utility-oriented technological progress. Finally, we present strategic energy control policy implications related to human capital.

The Effect of Human Capital on Income Equality: Cross-sectional Analysis

ABSTRACT The objective of this study is to investigate the effect of human capital on equality of income distribution. To this end, we use cross-sectional data analysis on a sample consisting of 89 countries with data in 2018. We construct an equation of income equality and next empirically estimate that equation. Human capital is proxied by gross enrolment rate of tertiary education whereas income equality is proxy by the ratio of the income share held by the lowest 10% (of the population) to the income share held by the highest 10% (of the population). In order to control the development level of countries, we added per capita income and its squared term into the equation. Moreover, the variables of technological development, openness and unemployment were added into the equation to control other factors such as demand- and supply-side. The results suggest strong evidence towards significant and positive effect of human capital on income equality. As policy implication, it is strongly recommended to encourage individuals to invest their education level, as the results indicate that countries with a high stock of human capital experience higher level of income equality. In addition, raising the trade volume, increasing the share of research and development expenditures in GDP, and promoting policies to reduce the unemployment rate are other substantial outputs of our empirical analysis.

Intellectual Capital and Coporate Performance of Quoted Consumer Goods Manufacturing Companies in Nigeria

This study investigated the effect of intellectual capital on corporate performance of selected consumer goods manufacturing companies in Nigeria from (2010-2019). Two research questions and two hypotheses were formulated for the study. Ex-post facto research design was employed in the study. The population of the study included all manufacturing firms quoted on the Nigerian Stock Exchange (NSE) as at 30th June 2020 with a sample size of Sixteen (16) consumer goods manufacturing companies randomly selected from the population sector. The study relied on secondary sources of data which was obtained from Annual reports of sampled companies as provided by individual companies and Nigerian Exchange Group (NXG) website. The Fixed effect panel least square regression analysis was employed in validating the hypotheses. The study revealed a significant positive effect of human capital on returns on assets. The findings also revealed a significant effect of structural capital on returns on assets which was used to proxy corporate performance. Consequent on the findings, the study therefore recommends amongst others that business executives and the entire stakeholders should begin to realize and treat intellectual capital as a very important business resource as it is a direct influencer of the firms’ corporate performance.

The effects of economic globalization and productivity on environmental quality: evidence from newly industrialized countries.

Newly industrialized countries (NICs) have become important contributors of the global environmental deterioration in line with the increases in their share in global output. Exerted efforts towards increasing welfare through global integration and increased productivity have sometimes come at the cost of worsened environmental quality in most of the countries. This study employs augmented mean group (AMG) estimator and investigates the effects of economic globalization, human capital, gross capital formation, and total factor productivity on ecological footprint (EFP) in 11 NICs from 1975 to 2017. The study also contains bootstrap causality tests to obtain causal inference. Empirical results reveal that economic globalization and human capital are negatively correlated with EFP, while GDP per capita manifests a positive and highly significant relationship with EFP. Unit percentage increases in economic globalization index and human capital are found to create .17% and .39% reduction in ecological footprint, respectively. On the contrary, a percentage increase in total factor productivity creates .13% increase in EFP. Estimation results support the pollution halo hypothesis for 11 NICs and confirm the positive effect of human capital on the environment and expose the adverse effects of inadequate regulation. In terms of causality analysis, results reveal unidirectional causality relationships (i) from economic globalization to EFP, (ii) from GDP per capita to EFP, (iii) from trade openness to EFP and from EFP to total factor productivity. Human capital and EFP are found to be in bidirectional causal relationship. The study underlines the importance of global integration and human capital as they are negatively correlated with and causally linked to EFP. Policies that undermine the global economic integration and neglect effective regulations are expected to further aggravate environmental problems in NICs.

The role of human capital in the foreign market performance of US SMEs: does owner ethnicity matter?

PurposeThis paper adopts an intellectual capital perspective to investigate the role of owners who are ethnic minorities in the foreign market expansion performance of SMEs, and in particular considers the human capital dimension of intellectual capital.Design/methodology/approachBased on the empirical investigation of a sample of 10,326 small- and medium-sized US high-tech manufacturing enterprises, the authors’ results reveal a positive relationship between the number of foreign markets where these SMEs operate and their financial performance, and that this effect is reinforced by the presence of ethnic minority owners, as ethnic minorities constitute a valuable source of intellectual capital which bring value to firms.FindingsThe authors’ findings reveal the importance of intellectual capital in an SME’s leadership position, specifically in terms of having individuals from normally disadvantaged groups as owners. In this sense, policymakers are crucial in supporting the inclusion of ethnic minorities in SME ownership, through advantageous treatment in firms, for example.Practical implicationsThe study presents practical implications for managers seeking foreign market expansion. In addition, when defining ownership structure (e.g., in the start-up phase), the role of human capital, in the form of ethnic minorities, should not be neglected, especially if an SME intends to operate or is already operating in different national contexts.Originality/valueThe authors’ results provide important insights into the positive effect of human capital on SME foreign market performance. The idea of a moderating role played by owners from ethnic minorities suggested here contributes to the literature on human capital and is one of the first attempts to consider this moderating factor in this relationship, especially in the SME context.

How does human capital foster product innovation? The contingent roles of industry cluster features

Although it is well recognized that human capital is an important strategic asset for firms, the evidence regarding its role in developing new products is inconclusive. Prior research has overlooked the contingent role of industry clusters in the relationship between human capital and product innovation. This study suggests that organizational learning and resource availability from industry clusters shape the relationship between human capital and innovation. Using multilevel and multisource onsite survey data from 236 firms in 36 Chinese township clusters, we find that the positive effect of human capital is weaker when firms learn more from inside industry clusters and is stronger when firms learn more from outside clusters. Moreover, human capital has a stronger positive effect on innovation among firms that are located in clusters with more spinoffs. These findings provide novel insights into how human capital can be matched with the features of clusters to foster innovation.

TECHNOLOGY DIFFUSION TOWARDS EMERGING MARKETS: A COMPARATIVE PANEL DATA ANALYSIS

This study aims to reveal how absorbable foreign direct investment (FDI) and macroeconomic performance affect technology diffusion along with patent applications, imports and human capital in 14 selected emerging markets (EMs) between 1980-2017. To do this, a new approach for indexing macroeconomic performance is suggested and a strongly balanced panel was investigated with two different econometric approaches. Key findings are as follows: (i) suggested macroeconomic performance index performs well under pooled mean group and dynamic common correlated effects estimations and proves the importance of macroeconomic outlook for developing countries, (ii) the positive effect of human capital on total factor productivity turns to negative when common factors are included in the estimation, meaning that international technology spillovers are a key source of productivity increases for developing countries.

Impact of marine industrial structure on environmental efficiency

Purpose Recently, China has been paying increasing attention to how to improve the efficiency of the marine environment and realize a green and sustainable development of the marine economy. Consequently, the industrial structure is crucial to improving efficiency. The purpose of this paper is to introduce environmental factors into the efficiency analysis framework and explore the relationship between marine industrial structure and marine environmental efficiency. Design/methodology/approach This paper uses marine economic data under the DEA-BBC model to measure the marine environmental efficiency of provinces and cities and classifies them by cluster analysis. Then, the marine industrial structure and marine environmental efficiency are studied by an econometric model with human capital, ownership structure, land economic development level, scientific research input and government intervention degree as control variables. Findings The overall level of marine environmental efficiency is relatively low in China, increasing and then decreasing over the research period. The rationalization of industrial structure and scientific research input have significant promoting effects on marine environmental efficiency, while the degree of government intervention has a significant inhibiting effect. The positive effect of human capital on efficiency depends on whether it can be successfully converted into productivity. The effects of industrial structure advancement, ownership structure and land economic development level of on the marine environmental efficiency are mixed. Originality/value The results provide a theoretical and decision-making basis for China to transform and upgrade its marine industrial structure and sustainably develop the marine economy.

The Role of Human Capital in Improving the Quality of Insurance Service

The Sought current research aim to determine the nature of the relationship between human capital with its dimensions (knowledge, ability, skill) and quality insurance service with its dimensions (reliability, responsiveness, tangibility, safety, communication, courtesy), which was done by analyzing the correlations and influence between the variables research, and applied to a random sample of the staff of a number of branches of both (national insurance and Iraqi company) in the Middle Euphrates, with number of (89) employees, hypotheses were tested using Pearson's correlation coefficient linear regression and (F) test using software of (SPSS V.20). In the light of the results, a set of the most important conclusions were such as, there is a positive effect of human capital in improving the quality of the insurance service, the research presents a number of recommendations, such as giving the consideration to human capital by insurance companies as a strategic resource that gives it a competitive advantage.

Human Capital Spending, Inequality, and Growth in Middle-Income Asia

ABSTRACTAsia’s rapid population aging fortifies the case for strengthening human capital investments. Further, the experience of the newly industrialized economies suggests that human capital investments will be a vital ingredient of the transition from middle income to high income. Those investments can also affect equity and public finances. In this article, we use data from the National Transfer Accounts to empirically analyze the effect of human capital investment in Asian countries on economic growth, inequality, and fiscal balance. Our empirical evidence suggests that human capital investments have a positive effect on labor productivity and, hence, output. The positive effect is stronger for poorer households and, hence, beneficial for equity. We also find that such investments can generate sufficient tax revenues to improve the fiscal balance. Overall, our evidence points to a positive effect of human capital on growth, equity, and fiscal balance in Asia.

Human Capital Spending, Inequality, and Growth in Middle-Income Asia

Asia’s rapid population aging fortifies the case for strengthening human capital investments. Further, the experience of the newly industrialized economies suggests that human capital investments will be a vital ingredient of the transition from middle income to high income. Those investments can also affect equity and public finances. In this paper, we use data from the National Transfer Accounts to empirically analyze the effect of human capital investment in Asian countries on economic growth, inequality, and fiscal balance. Our empirical evidence suggests that human capital investments have a positive effect on labor productivity and, hence, output. The positive effect is stronger for poorer households and, hence, beneficial for equity. We also find that such investments can generate sufficient tax revenues to improve the fiscal balance. Overall, our evidence points to a positive effect of human capital on growth, equity, and fiscal balance in Asia.

Institutional Quality Mediates the Effect of Human Capital on Economic Performance

AbstractThis paper considers the relationship between institutional quality, educational outcomes, and economic performance. More specifically, we seek to establish the linkages by which government effectiveness affects per capita income via its mediating impact on human capital formation. Our empirical approach adopts a two‐stage strategy that estimates national‐level educational production functions that include government effectiveness as a covariate, and uses these estimates as instruments for human capital in cross‐country regressions of per capita income. Our results identify a significant and positive effect of human capital on per capita income levels, and partially resolves the inconsistency between macro‐ and micro‐level studies of the effect of human capital on income. The results remain robust to alternative specifications, extension to a panel setting, subsamples of the data and fully endogenous institutions.

Rural–Urban Migration, Substitutability of Human Capital and City Productivity: Evidence from China

AbstractAmong the studies on the productivity effect of migration, the role of the substitutability of human capital between migrant workers and local workers has not received much attention. The elasticity of substitution is important for rural–urban migration in China, because there is a substantial difference in schooling quality between rural and urban regions and because there is imperfect competition in city labor markets. Using aggregate city‐level data from the 2010 China Population Census, we find that the positive effect of human capital on city productivity improves as the substitutability increases. Moreover, a grid‐search shows that the “best” estimate of the substitutability in China is between 2.1 and 2.5, far from being complete.

Rural-Urban Migration and City Productivity: Evidence from China

Among the studies on the productivity effect of migration, the role of the substitutability of human capital between migrant workers and local workers has not received much discussion. The elasticity of substitution is important for rural-urban migration in China, because there is substantial difference in schooling quality between rural and urban regions and because there is imperfect competition in city labor markets. Using aggregate city-level data from the 2010 China Population Census, we find that the positive effect of human capital on city productivity improves as the substitutability increases. Moreover, grid-search shows that the “best” estimate of the substitutability in China is between 2.1 and 2.5, far from being complete.

Impact of Human Capital on Entrepreneurial Earnings: Employing Parametric and Nonparametric Methods

Economics literature provides ample evidence regarding the important positive effect of human capital on earnings. However, the self-employed have been consistently omitted in such studies. To fill this gap, I examine the effect of human capital on entrepreneurial earnings using National Survey of College Graduates dataset. To estimate the coefficients on income levels, I take advantage of three different econometric methods, namely OLS, Heckit and matching estimators. Regression results on men show that having higher education brings more success in terms of self-employment earnings. Evidence shows that men do better when they are self-employed whereas women are better off when they are wage workers. The most lucrative majors for male entrepreneurs are architecture, math, physics, chemistry and most fields of engineering. Women entrepreneurs who enjoy higher earnings are mostly majored in architecture, medicine, law, psychology and counseling. However, no particular education level is found to contribute to female entrepreneurial earnings.

Inflation Thresholds and Growth

This paper investigates inflation thresholds that lead to higher growth rates using five-year averages of standard variables for 84 countries from 1965 to 2004. The historical experience has important policy implications for developing countries: (i) the catch-up effect has worked only when inflation is below 12%; (ii) the positive effect of human capital on growth has been present and significant when inflation has been below 15%; (iii) financial development has been effective only when inflation has been below 10%; (iv) government size has negatively affected growth when inflation has been below 10%; (v) trade has positively affected growth when inflation has been below 8%.

Service Innovativeness and Innovation Success in Technology-based Knowledge-Intensive Business Services: An Intellectual Capital Approach

This paper analyzes the influence of the three components of intellectual capital (human, social and organizational) and intensity in collaboration with clients on service innovativeness in knowledge-intensive business services (KIBS). It also includes a discussion on the impact of both service innovativeness and intensity in collaboration with clients on innovation success. An empirical study is conducted on a sample of companies belonging to two technology-based KIBS industries: software and R&D services. The results suggest that the positive effect of human capital on service innovativeness is moderated by intensity in collaboration with clients, being human capital enhanced by organizational and social capital. The effect of social capital on service innovativeness is partially mediated by human capital and also moderated by intensity in collaboration with clients. Finally, service innovativeness positively affects innovation success, while intensity in collaboration with clients has a higher effect.

Combined effect of human capital, temporary employment and organizational size on firm performance

– This study aims to examine how temporary employment and organizational size moderate the effect of human capital on firm performance. The authors also analyze the overall effect of human capital, temporary contracts and organizational size on firm performance. This enables them to identify which combination of these three variables leads to the highest levels of profitability., – From a sample of 1,403 Spanish firms, the authors carry out a comparative analysis of the impact of human capital on labor productivity and return on sales among small and large companies with high and low use of temporary employment., – The positive effect of human capital on return of sales is greater in large firms with low temporary employment than in small firms with high temporary employment. In addition, this positive effect is not universal because in some scenarios it is not significant. The most beneficial context is that of large companies with a high level of human capital and a low use of temporary employment., – The results should be interpreted within the Spanish manufacturing sector., – Decisions about investment in human capital and the use of temporary workers should be taken jointly by personnel managers, in accordance with the size of the firm. If this holistic view is ignored, a full understanding of the impact of human capital on firm performance will be obscured. On the other hand, a common feature that large and small firms share is an incompatibility between human capital and temporary employment., – Growing interest has been shown in the degree to which investment in human capital contributes to firm performance; yet limited research attention has been paid to the contextual conditions that moderate this relationship. Investment in human capital can be more beneficial in some scenarios than in others.