Empirical Studies on Human Capital and Economic Growth

2008 ◽  
pp. 107-155
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Empirical Studies

On the Effectiveness of Growth- Enhancing Policies in a Model of Growth Without Scale Effects

2002 ◽  
Vol 3 (3) ◽  
pp. 339-346 ◽  
Author(s):  
Lutz G. Arnold
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Scale Effects ◽  
Growth Models ◽  
Empirical Studies ◽  
Human Capital Accumulation ◽  
Accelerate Growth

Abstract Standard R&D growth models have two disturbing properties: the presence of scale effects (i.e., the prediction that larger economies grow faster) and the implication that there is a multitude of growth-enhancing policies. Recent models of growth without scale effects, such as Segerstrom's (1998), not only remove the counterfactual scale effect, but also imply that the growth rate does not react to any kind of economic policy. They share a different disturbing property, however: economic growth depends positively on population growth, and the economy cannot grow in the absence of population growth. The present paper integrates human capital accumulation into Segerstrom's (1998) model of growth without scale effects. Consistent with many empirical studies, growth is positively related not to population growth, but to investment in human capital. And there is one way to accelerate growth: subsidizing education.

scholarly journals Endogenous Economic Growth: The Arrow-Romer Theory and a Test on Vietnamese Economy

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Endogenous Growth ◽  
Emerging Economies ◽  
Empirical Studies ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Endogenous Growth Theory ◽  
Labor Relationship ◽  
Elasticity Of Factor Substitution

The Arrow-Romer growth model helped to overcome the main drawback of the Solow-Swan model, where technical change is created exogenously, not by the firms making decisions, and formulated the conditions for endogenous growth in an economy. Nonetheless, the presentation of the Arrow-Romer model and corresponding empirical studies by the Cobb-Douglas functions hides the role of the capital-labor relationship for economic growth. A constant elasticity of substitution (CES) function, constructed by Arrow et al. (1961), allows solving this problem. So, the purpose of the current research is to test the endogenous growth of the Vietnamese economy, which has experienced a more than 30-year market-oriented reform through specifying an aggregate CES function. By applying Bayesian nonlinear regression, the research results revealed the elasticity of factor substitution (ES) lower than one. This work theoretically and empirically contributes to the endogenous growth theory in problems concerned with emerging economies. Investments in physical and human capital and technological progress are the determinants of endogenous growth. From the findings obtained, the author concludes that even though having achieved a rather impressive growth rate over more than three decades, the Vietnamese economy has not yet generated the possibility of endogenous growth, and suggests that endogenous growth can be hardly generated in emerging economies like Vietnam if important growth policies related to accumulation of physical and human capital as well as enhancement of R&D activities are not simultaneously implemented. It is indispensable to focus on substantially improving institutional quality.

scholarly journals Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake

2018 ◽  
Vol 10 (12) ◽  
pp. 4409 ◽  
Author(s):  
Renjie Zhao ◽  
Shihu Zhong ◽  
Aiping He
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Wenchuan Earthquake ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Policy Implications ◽  
Economic Recovery ◽  
Obvious Effect ◽  
2008 Wenchuan Earthquake ◽  
The Government

How disasters have affected economic growth has often been a subject for economic debate, and empirical studies of the experience in China are clearly inadequate. Using the panel data from 181 county-level cities in Sichuan province from 2003 to 2013, this paper investigates the direct and dynamic effects of the Wenchuan earthquake disaster on economic growth, as well as how national rescue affected postdisaster economic recovery. The econometric results show that earthquakes significantly reduce real GDP in the affected areas after controlling for the national rescue variables, and this negative effect exists in the affected area over a long time. In addition, our empirical findings suggest that the postdisaster national rescue can promote economic recovery in the affected areas by increasing government expenditure, improving traffic conditions, and enhancing the urbanization process and the level of industrialization. Besides, state financial aid has no obvious effect on the development of tertiary industries and the accumulation of human capital in affected areas. These results were found to be robust after applying several approaches to alleviate the potential endogeneity problem. Findings in this study carry several important policy implications. As well as providing national rescue to promote postdisaster reconstruction, the government should also develop policies that will provide direct aid funding to tertiary industries and boost postdisaster economic reconstruction and human capital accumulation, thus improving the efficiency of relief funding and reducing the long-term adverse effects of the disaster on economic growth.

scholarly journals Macroeconomic Determinants of Economic Growth: A Review of International Literature

2016 ◽  
Vol 11 (2) ◽  
pp. 33-47 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Human Capital ◽  
Fiscal Policy ◽  
Empirical Studies ◽  
Physical Capital ◽  
Developed Countries ◽  
Empirical Literature ◽  
Macroeconomic Determinants ◽  
Determinants Of Economic Growth

AbstractThe paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors.

scholarly journals Measuring human capital in Portugal

2016 ◽  
Author(s):  
João Paulo Cabral Pereira
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Measurement Errors ◽  
Growth Models ◽  
Empirical Studies ◽  
Annual Series ◽  
Modern Economic Growth ◽  
Open Issue ◽  
Modern Economic ◽  
Important Measurement

Although human capital is widely used as an input in modern economic growth models, in empirical studies, its importance in explaining economic growth is still an open issue. In fact, results range from influence in Gross Domestic Product growth rates to just a levels effect, and there are even several studies that find no significant explaining capability of human capital in economic growth. Human capital is usually measured through a proxy related to the population knowledge or to education. These proxies are prone to important measurement errors that may be the basis for the different found results of their effects on economic growth. The present study recognizes the importance of a good measure of human capital. It builds three annual series for Portugal, one of them based on years of schooling for the period 1960 to 2001, with a methodology different from other studies available for Portugal, and two others based on the market labour income for the period 1982 to 1998.

Current Trends in Human Capital Formation

2020 ◽  
pp. 73-99
Author(s):  
Ayansola Olatunji Ayandibu ◽  
Lawrence Abiwu
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Empirical Studies ◽  
Capital Formation ◽  
Organisational Learning ◽  
Sustainable Competitive Advantage ◽  
Human Capital Formation ◽  
Collective Knowledge ◽  
Current Trends ◽  
Organisational Routines

This chapter explores the trends in human capital formation towards building sustainable organisations. A literature review approach was adopted to investigate HR practices which contribute to human capital formation, the contribution of human capital, as well as the barriers to human capital formation and theories of human capital formation. Human capital has been conceptualized as the collective knowledge that is embedded in the personnel, organisational routines, and network relationships of an organisation. It was found that many countries such as China, Russia, India, and Brazil are experiencing economic growth because of the investment in their human capital formation. The review of empirical studies showed that human capital has been considered as a firm's strategic resource for sustainable competitive advantage. This chapter submits that to prevent loss of human capital, it is important for organisations to create an environment and culture that will foster or encourage individual and organisational learning.

Empirical Contribution of Human Capital in Entrepreneurship

2021 ◽  
pp. 097215092097670
Author(s):  
Noman Arshed ◽  
Ramla Rauf ◽  
Samra Bukhari
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Empirical Studies ◽  
Quadratic Function ◽  
Generalized Least Squares ◽  
Important Indicator ◽  
Different Types ◽  
The One ◽  
Different Levels ◽  
Empirical Contribution

The empirical effects of entrepreneurship on economic growth through different channels have convinced researchers to coin entrepreneurship as an important indicator. While many studies are exploring the determinants of entrepreneurship, education is the one which is most studied. Empirical studies have discussed that no doubt education leads to entrepreneurship, but different levels of education have different effects. This study isolated different types of education and formed quadratic function in the expectation that the type and incidence of education may change the intentions and environment for the prospective entrepreneur. The estimates of feasible generalized least squares (FGLS) model using 103 countries show that all three levels of education form U-shaped relationship with entrepreneurship in the overall model. This study helps identify the current positioning of countries, suggesting policies with respect to a particular type of education.

scholarly journals Economic Growth in the Axis of Human Capital, R&D and Innovation: An Analysis on the G8 Countries

2014 ◽  
Author(s):  
Mustafa Gömleksiz ◽  
Birol Mercan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Private Sector ◽  
Tertiary Education ◽  
Empirical Studies ◽  
Cross Sectional ◽  
Public And Private ◽  
Important Place ◽  
Public And Private Sector ◽  
The Impact

In recent years, human capital, R&D activities and innovation have an important place in both empirical studies related with economic growth and new growth models. In this context, it is drawn that innovations frequently arising from R&D activities are the main engine of the new economy, while productivity-based positive relationship between human capital and economic growth of the countries is emphasized by a variety of evidence. This paper empirically investigates the impact of human capital, R&D and innovation on economic growth in context of G8 countries. Indicators used in analyze covering the period 1998-2012 are gross domestic product per capita, public spending on education, population with tertiary education between aged 25-64, total public and private sector R&D expenditures and international patent grants. Such relationships were analyzed by using the panel data method for the 8 cross-sectional units and 15 year long period. The results indicate that impact of both human capital and innovation on economic growth is signifanctly positive. Furthermore, results show that the total public and private sector R&D expenditure has a negative effect on economic growth while its coefficient statistically insignificant. Latter result obtained from analyze also contribute to discussions about the roles of patents and public funding or public performed R&D in economic growth.

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