REGIONAL DISPARITIES IN LABOUR PRODUCTIVITY AND THE ROLE OF CAPITAL STOCK

2020 ◽  
Vol 253 ◽  
pp. R29-R43
Author(s):  
Ben Gardiner ◽  
Bernard Fingleton ◽  
Ron Martin
Keyword(s):  
Human Capital ◽  
Capital Stock ◽  
Labour Productivity ◽  
Output Growth ◽  
Regional Variations ◽  
Spatial Panel ◽  
Perpetual Inventory Method ◽  
The Uk ◽  
Regional Capital ◽  
The Impact

This paper reports on the availability of regional capital stock data,1 in the form of new/updated regional (NUTS2 level) capital stock estimates,2 building on an approach (Perpetual Inventory Method) which had been previously developed for the European Commission. The particular focus here is on the UK and how these data are used to shed light on regional labour productivity disparities. Using a NUTS2 level dataset constructed for the period 2000–16, we use a dynamic spatial panel approach from Baltagi et al. (2019) to estimate a model relating productivity to output (growth or levels) and augmented by explicit incorporation of capital stock plus various other covariates such as human capital. We find that regional variations in capital stocks per worker make a significant contribution to regional variations in labour productivity, but the geography of human capital is also highly relevant. Moreover, we give evidence to show that as human capital rises, notably as we move from the regions to London, the impact of capital stock per worker is less. The effect of capital stock depends on the level of human capital.

Human capital accumulation, income distribution, and economic growth: a demand-led analytical framework

2021 ◽  
Vol 9 (3) ◽  
pp. 319-336
Author(s):  
Gilberto Tadeu Lima ◽  
Laura Carvalho ◽  
Gustavo Pereira Serra
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Analytical Framework ◽  
Output Growth ◽  
Human Capital Accumulation ◽  
Capital Utilization ◽  
Tax Rate ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

This paper incorporates human capital accumulation through provision of universal public education by a balanced-budget government to a demand-driven analytical framework of functional distribution and growth of income. Human capital accumulation positively impacts on workers’ productivity in production and their bargaining power in wage negotiations. In the long-run equilibrium, a rise in the tax rate (which also denotes the share of output spent in human capital formation) lowers the pre- and after-tax wage share and physical capital utilization, and thus raises (lowers) the output growth rate when the latter is profit-led (wage-led). The impact of a higher tax rate on the employment rate (which also measures human capital utilization) in the long-run equilibrium is negative (ambiguous) when output growth is wage-led (profit-led). In any case, the supply of higher-skilled workers does not automatically create its own demand.

scholarly journals Regulation of Lifelong in Education and İts Economic, Social Benefits

2021 ◽  
Vol 12 (6) ◽  
pp. 1298-1310
Author(s):  
Allahyar Muradov Et al.
Keyword(s):  
Human Capital ◽  
Social Problems ◽  
Labour Productivity ◽  
Economic Benefits ◽  
Social Benefits ◽  
Development Economic ◽  
Knowledge Based ◽  
The Future ◽  
The Impact

Sustainability in education is important in ensuring knowledge-based and innovation-driven development and human capital reproduction. Sustainability is particular important for the prevention of some economic and social problems that may arise in the future and raising the competitiveness of the country. Sustainability - the prevention as some of economic and social problems that may arise in the future is of particular importance in raising the country's competitiveness. The aim of the research is to estimate the economic-social benefits of regulation of sustainability in education and to give the suggestions in the direction of the improvement of the effectiveness of the regulation. The impact of continuity in education on the formation and development of human capital, knowledge-based society building, labour intelligence, competitiveness and the improvement of welfare are assessed cross-country in the article. In particular, in recent years, researches and politicians have analysed the ‘4th industry’ revolution (‘Industry 4.0’) ‘the benefits and losses in the medium and long-term perspective and its interaction with the sustainability of education. Here are two issues: 1) socioeconomic disadvantages of ensuring sustainability in education, 2) socioeconomic advantages of ensuring sustainability in education. Firstly, it is analysed the impacts of increased unemployment, reduction of employment income, declining social security and welfare that will be resulted as problems on economic development. Secondly, it is analysed (ensuring in sustainability condition) the distinguished factors of rapid technological innovation, labour productivity, repatriation of human capital, raising competitiveness on the international level, innovation-based development, economic benefits of knowledge and skills.

scholarly journals IMPACT OF HUMAN CAPITAL DEVELOPMENT ON PRODUCTIVITY GROWTH IN EU MEMBER STATES

2018 ◽  
Vol 16 (0) ◽  
pp. 1-12 ◽  
Author(s):  
Alma Mačiulytė-Šniukienė ◽  
Kristina Matuzevičiūtė
Keyword(s):  
Human Capital ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Labour Productivity ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Education Expenditure ◽  
Member States ◽  
Eu Member States ◽  
The Impact

In this research, we investigate the impact of human capital on labour productivity in European Union member states using panel data analysis. Results of the paper are estimated using the Pooled ordinary least squares (OLS) and Fixed effects model (FEM). The results show that human capital is positively significant in improving the growth of labour productivity in the EU. Our estimates also suggest that the impact occurs after three times lags in case of education expenditure.

The World Economy: The impact of rising oil prices and weak equity markets on global growth

2008 ◽  
Vol 205 ◽  
pp. 8-13
Author(s):  
Ray Barrell
Keyword(s):  
Central Bank ◽  
World Economy ◽  
Financial Innovation ◽  
Oil Prices ◽  
Output Growth ◽  
Sequence Of Events ◽  
The Us ◽  
The World ◽  
The Uk ◽  
The Impact

In interesting times several things may happen simultaneously, and they may have connected roots. The financial turmoil that developed initially in the US banking sector had its roots in financial innovation that had made available cheap finance and increased demand for housing. This wave of low cost finance had spread to Europe, and house prices rose in a correlated way. The increase in demand in the world economy that resulted from strong growth in lending and high asset values helped raise output growth outside the OECD, and this in turn put upward pressure on oil prices. Markets sometimes work slowly, and the effects of the increase in demand on prices appear to be coming through just as the asset bubble is collapsing. The sequence of events was not inevitable, as low personal sector saving in the US and the UK as well as elsewhere could have been offset by tighter fiscal policy, and better prudential regulation of lenders would also definitely have helped. The desire to move financial regulation from the central bank, as in the UK, may have been for good, competition based, reasons, but it has meant that financial sector oversight has not taken account of the macroeconomic implications of a wave of lending that rested on risky financial innovation and therefore it has not properly addressed the issue of systemic risk (see Barrell and Davis, 2005). The resulting financial turmoil has meant that banks have made losses, and have been unable to trust each other's solvency when making deals. As a result three month interbank rates have risen well above central bank intervention rates, as can be seen in figure 1.

Analysis of Human Capital Development and Output Growth Nexus in Africa’s Most Populous Country: A New Evidence from ARDL Approach

2020 ◽  
Vol 12 (2) ◽  
pp. 105-118
Author(s):  
Anthony Orji ◽  
Jonathan E. Ogbuabor ◽  
Chikaodinaka Iwuagwu ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Human Capital ◽  
Public Expenditure ◽  
Output Growth ◽  
Series Data ◽  
Positive Contribution ◽  
Human Capital Development ◽  
Long Run ◽  
Capital Development ◽  
The Impact ◽  
Populous Country

This article empirically analysed the impact of human capital development on output growth in Nigeria, Africa’s most populous country. The study employed time series data from 1985 to 2018 and adopted the autoregressive distributed lag (ARDL) model bounds test to ascertain the existence of a long-run relationship between human capital development and output growth. The findings of this study revealed that there exists a long-run relationship between human capital development and output growth in Nigeria. Human capital development components such as public expenditure on health and labour force showed significant positive contribution to output growth in Nigeria, while public expenditure on education showed a reverse relationship. Gross capital formation (proxy for stock of physical capital) also showed positive contribution to growth. The study therefore recommended that there is need to re-evaluate the expenditure made on public education to ensure that it is well utilised to fund critical infrastructure that will enhance learning, capacity building and human development, which will ultimately contribute to output growth. Policies should also be enacted to support improvements in the other components of human developments’ proxies in order to contribute optimally to output growth continuously.

Analysis on the Spatial Effect of Talent Supply of Vocational Education and Economic Growth of Tobacco Industry from the Perspective of Human Capital

2021 ◽  
Vol 7 (6) ◽  
pp. 5161-5171
Author(s):  
Wei Wang ◽  
Yanan Yang ◽  
Ping Li
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Theoretical Model ◽  
Vocational Education ◽  
Tobacco Industry ◽  
Spatial Interaction ◽  
Regional Distribution ◽  
Spatial Panel ◽  
Lifetime Number ◽  
The Impact

Objectives: Human capital plays an important role in the economic growth of tobacco industry. Education is the direct way to form human capital. At the same time, vocational education is a part of the education system. Vocational education is mainly to cultivate skilled human capital. From the perspective of human capital, this paper studies the impact of talent supply of vocational education on tobacco economic growth. A combination of qualitative and quantitative analysis was used. This paper analyzes the current situation of talent supply of vocational education and tobacco economy in China. It also analyzes the correlation between talent supply of vocational education and tobacco economy. Based on the theoretical model of human capital economic growth. Establish the theoretical model of talent supply in vocational education and tobacco economic growth. Comprehensively consider the spatial interaction of economic growth. Using the spatial panel econometric model, this paper makes an empirical analysis on 29 provinces and cities in China. Use Geoda, MATLAB and other software for empirical calculation. The results show that the supply of vocational education talents and the growth of tobacco economy are on the rise. However, the regional distribution is uneven. And vocational education is positively correlated with tobacco economic growth. The empirical results show that the regional tobacco economic growth in China has negative spatial auto-correlation. Employment, lifetime number of vocational education and human capital level in the tobacco industry significantly promote the economic growth of the tobacco industry. The results provide a reference for the regulation of China's tobacco industry.

scholarly journals Human Capital and Economic Growth in OECD Countries

2006 ◽  
Vol 226 (6) ◽  
Author(s):  
Torge Middendorf
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Student Performance ◽  
Capital Stock ◽  
International Student ◽  
Positive Impact ◽  
Large Country ◽  
Panel Data Estimation ◽  
The Impact ◽  
Instrumental Variables Approach

SummaryRecent studies on international student performance renewed the interest in the contribution of human capital to economic growth. So far the exploration of large country comparisons delivered rather mixed results. Concentrating on OECD member countries, this paper uses panel data estimation techniques to refine this analysis. Furthermore, as theory differs about the right measure of human capital, the impact of the human capital stock as well as its rate of accumulation on economic growth is analyzed. Yet estimation results reveal only a positive impact of the human capital stock on economic growth suggesting that an increase in average schooling years by one year yields a rise in the GDP growth rate of about 0.5 percentage points. However, when taking possible endogeneity into account in an instrumental variables approach, these conclusions on the impact of the level of human capital on economic growth is demonstrated to be rather fragile.

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