scholarly journals The Long-Term Impact of Human Capital Investment on GDP: A Panel Cointegrated Regression Analysis

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Ahmet Gökçe Akpolat
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Life Expectancy ◽  
Capital Investment ◽  
Physical Capital ◽  
Developed Countries ◽  
Data Set ◽  
Life Expectancy At Birth ◽  
Education Expenditures ◽  
The Impact

This study aims to determine the long-run impact of physical and human capital on GDP by using the panel data set of 13 developed and 11 developing countries over the period 1970–2010. Gross fixed capital formation is used as physical capital indicator while education expenditures and life expectancy at birth are used as human capital indicators. Panel DOLS and FMOLS panel cointegrated regression models are exploited to detect the magnitude and sign of the cointegration relationship and compare the effect of these physical and human capital variables according to these two different country groups. As a consequence of panels DOLS and FMOLS models, the impact of physical capital and education expenditures on GDP in the developed countries is determined as higher than the impact in the developing countries. On the other hand, the impact of life expectancy at birth on GDP is determined as higher in the developing countries.

scholarly journals Education and the Income Differential: An Estimation for Rawalpindi City

1977 ◽  
Vol 16 (2) ◽  
pp. 144-164 ◽  
Author(s):  
Khalil A. Hamdani
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Capital Investment ◽  
Physical Capital ◽  
Developed Countries ◽  
Income Differential ◽  
Income Differentials ◽  
Economic Survey ◽  
Empirical Tests ◽  
Comparative Results

Empirical tests of the human capital hypothesis—that education increases an individual's income—have been undertaken in several countries with favourable results [13]. These results show that (1) income differentials between individuals of different educational levels are wide; (2) the differentials establish shortly after the initial years of work and maintain through the duration of the life cycle; (3) the differentials are greater in developing countries than in developed countries; (4) the returns to education, after allowing for educational costs, exceed the returns to physical capital investment in developing countries; (5) the highest returns are to primary education; and (6) private returns exceed social returns. Which, if not all, of these results are true for Pakistan is not known. This paper yields such comparative results through an application of the human capital hypothesis to Rawalpindi City. The data for Rawalpindi are for males and derive from a socio-economic survey conducted by the Pakistan Institute of Development Economics in 1975.

scholarly journals The Impact of Investment in Human Capital on the Exports of Goods and Services

2021 ◽  
Vol 2 (2) ◽  
pp. 161-192
Author(s):  
Samina Siddique ◽  
Zafar Mahmood ◽  
Shabana Noureen
Keyword(s):  
Human Capital ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Developed Countries ◽  
Business Environment ◽  
Least Square ◽  
Goods And Services ◽  
Foreign Countries ◽  
The Impact

With the growth of services economy worldwide, it has become essential for policymakers to comprehend the export competitiveness of nations to identify offshore export locations or alternatively offer their own sites as an exporting location. Human capital investment is considered as a key component in attracting foreign countries for outsourcing purposes. Earlier studies have shown mixed role of human capital investment on off shoring activities. This study assesses the effects of control variables (business environment, wages and IT infrastructure) and human capital investment on export of goods and services from the selected Asian outsourcing countries. Panel Estimated Generalized Least Square (EGLS) technique is used with country weights to specifically overcome the problem of autocorrelation. Empirical findings show that investment in human capital is significant for both goods and services exports. We found a large impact of human capital investment on exports of goods and services in selected Asian countries as compared to selected developed countries. Empirical findings further suggest that human capital is more essential for export of goods than export of services. From these findings, the study draws important implications for policymaking in countries who intend to offer themselves as an attractive location for exporting and for those who intend to locate their production activities overseas.

scholarly journals Menelusuri Kembali Peran Investasi Modal Manusia dan Modal Fisik Dalam Meningkatkan Pertumbuhan Produktivitas

2019 ◽  
Vol 8 (3) ◽  
pp. 216
Author(s):  
Hendarmin Hendarmin
Keyword(s):  
Human Capital ◽  
Panel Data ◽  
Capital Investment ◽  
Average Length ◽  
Random Effect ◽  
Participation Rate ◽  
Physical Capital ◽  
Economic Productivity ◽  
West Kalimantan ◽  
The Impact

The purpose of this study is to examine the impact of human capital on the level of economic productivity of regencies/cities in West Kalimantan Province. The data used in this study are panel data from 14 West Kalimantan Province/City Districts during the period 2012-2017 whose research results were analyzed using the Random Effect approach panel data regression analysis. The results of the study explained that the role of hum an capital as measured by the level of education, namely the average length of school (RLS), High School Participation Rate, and health level namely life expectancy (AHH) had a non-significant effect on economic productivity. Whereas physical capital investment (PMTB) has a significant influence on the level of economic productivity. The results of the analysis also show that for the human capital variable it has a smaller magnitude compared to the physical capital investment variable. Based on these results, it is concluded that the impact of human capital is very important in increasing economic productivity in the Regency/City of West Kalimantan Province.

scholarly journals Corruption, Public Expenditure and Human Capital Accumulation

2016 ◽  
Vol 8 (1) ◽  
pp. 17-45
Author(s):  
Spyridon Boikos
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Public Expenditure ◽  
Parametric Method ◽  
Physical Capital ◽  
Human Capital Accumulation ◽  
Linear Effect ◽  
The Public ◽  
The Impact

This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.

World Bank Directives, Domestic Interests, and the Politics of Human Capital Investment in Latin America

2000 ◽  
Vol 33 (1) ◽  
pp. 113-143 ◽  
Author(s):  
WENDY HUNTER ◽  
DAVID S. BROWN
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
World Bank ◽  
Latin American ◽  
Capital Investment ◽  
Developed Countries ◽  
Cross Sectional ◽  
Education And Health ◽  
The World Bank ◽  
The World

Recent studies underscore the importance of international organizations in transmitting norms, ideas, and values to developing countries. But has this diffusion influenced government policy in less developed countries? During the past two decades, the World Bank has emphasized the need for Third World governments to increase the stock of human capital by investing in education and health. Specifically, it has encouraged developing countries to shift an increasing share of their resources toward primary education. The authors examine 13 Latin American countries between 1980 and 1992 to establish the relationship between World Bank project lending and government investment in human capital. They combine time-series cross-sectional analysis with field research to evaluate the World Bank's influence on government spending on education and health. Although the World Bank may be successful in convincing developing country technocrats to “invest in people,” this research suggests that it is less successful in convincing the politicians who control the purse strings.

scholarly journals Institutional aspect of influence of the foreign direct investments on the economic growth

2020 ◽  
Vol 210 ◽  
pp. 13022
Author(s):  
Ekaterina Anoshkina ◽  
Elizaveta Markovskaya ◽  
Angela Mottaeva ◽  
Asiiat Mottaeva
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Capital Accumulation ◽  
Institutional Environment ◽  
Developed Countries ◽  
Negative Influence ◽  
Economic Environment ◽  
Foreign Direct Investments ◽  
The Impact

Authors analyze the differences between the influence of the foreign direct investments on the economic growth in the developed and developing countries. For the model of the gross domestic product (GDP) on the foreign direct investments for the developed countries the following data are used: observations for the 10 countries during 1983-2013. For the model of the GDP on the foreign direct investments (FDI) for the developing countries the following data are used: observations for the 11 countries during 1994-2013. Investigators conclude that the influence of the foreign direct investments on the economic growthdefinitely has the positive effect in both cases. However, the degree of this influence depends on the type of the country. The developing countries get the smaller effect from the foreign direct investments because of the non-transparent institutional environment and negative influence of other non-economic factors. These findings provide an opportunity to judge that in developed countries, institutional and economic environment and, most of all, human capital allow you to get the full effect of FDI, that is, as capital accumulation and spill-over effects. In developing countries, there should be thresholds to reduce effects of FDI, such as insufficient human capital and poor economic and institutional environment. Thus, the impact of FDI on economic growth is certainly positive, however the level of this effect depends on country characteristics. That is, the hypothesis that FDI affects developing countries less than developed, due to the existence of thresholds in the form of unhealthy institutional and economic environment were confirmed.

scholarly journals The Determinants of Labor Productivity: Analyses on Chosen Countries (1960-2010)

2016 ◽  
Author(s):  
Murat Nişancı ◽  
Aslı Cansın Doker ◽  
Adem Türkmen ◽  
Ömer Selçuk Emsen
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Labor Productivity ◽  
Panel Data Analysis ◽  
Physical Capital ◽  
Developed Countries ◽  
Learning By Doing ◽  
Marginal Productivity ◽  
Growth Trend ◽  
Economic Productivity

Discussions on economic productivity, in micro analysis aspects there is direct causal relationship between increases or decreases in the production and productivity, whereas it can be said that productivity is based on economic recession or growth in macro analysis aspects. In the literature, while Classical theoreticians is attributed that the source of growth is the marginal productivity of capital, neoclassic school claims that marginal productivity difference provide benefit the country from behind for realization of the convergence hypothesis. Furthermore, increasing efficiency and as the factors this increase efficiency human capital, learning by doing concepts and technology are focused in the endogenous growth theories. In this study, human capital, physical capital per worker, exports per worker, gender differences, fertility, life expectancy and dependent population ratio were determined as determinants of labor productivity. In respect to labor productivity, variables are divided to three main groups in order to economic demographic and social and psychological factors. The variables are placed with taking five years average due to the fact that those variables’ effects reveal themselves more clearly in the long term. In the paper, it was investigated by panel data analysis considering groups of developed and developing countries between 1960 and 2010 period. In this context the degree of efficiency may well be discussed with parameters of selected variables for productivity of labor. Additionally, within framework of descriptive statistics the differences and similarities between countries were interpreted for political recommendations to developing countries how to increase productivity for catching developed countries’ growth trend.

scholarly journals The Relationship Between Human Capital and the Regional Economy Productivity

JEJAK ◽  
2019 ◽  
Vol 12 (1) ◽  
pp. 138-152
Author(s):  
Hendarmin Hendarmin ◽  
Metasari Kartika
Keyword(s):  
Human Capital ◽  
Panel Data ◽  
Capital Investment ◽  
Regional Economy ◽  
Random Effect ◽  
Study Finding ◽  
Physical Capital ◽  
Productivity Level ◽  
Economic Productivity ◽  
The Impact

The aim of this study is to measure the impact of the human capital on the economic productivity level in provinces of Kalimantan Island. The data used in this study was a panel data from 5 provinces in Kalimantan Island within 2013-2017 time periods which its study finding was analyzed using panel data regression analysis with random effect approach. The study finding explains that the human capital, measured by the education level which is the average of years of education, the health level which is life expectancy and investment has a positive effect on the productivity level of the regional economy. The analysis result also shows that the health variable has a bigger magnitude compared to the education and physical capital investment variables. Based on the result, it can be concluded that the effect of human capital is very important in increasing economic productivity in the region.

scholarly journals Waste Management Systems’ Impact on Health and Environment in Developing Countries

2017 ◽  
Author(s):  
L. Abarca Guerrero ◽  
V. Rudin Valverde ◽  
Ger Maas
Keyword(s):  
Public Health ◽  
Developing Countries ◽  
Life Expectancy ◽  
Waste Management ◽  
Environmental Indicators ◽  
Management Systems ◽  
Health Economy ◽  
Management Options ◽  
Life Expectancy At Birth ◽  
The Impact

There is a large body of literature produced in developed countries on the potential adverse health effects of different waste management options but hardly studied in developing countries. On the contrary, the relations between economic issues and the impact of waste management systems on the environment have been studied by different scholars from developing countries. This paper aims to explain associations between some parameters that describe waste management systems at a city level and country parameters in relation to public health and environmental pollution in developing countries. This work reviews waste management systems from more than thirty urban areas in 22 developing countries in 4 continents It describes partly their waste management as answers to 122 questions that include information of public sources and general country characteristics. A combination of methods was used in order to assess the impact of waste management system on health and the environment. Collected data was analyzed using descriptive and inferential statistic methods in order to draw conclusions. The outcomes were unable to provide convincing evidence of an association of waste management and the impact on health. On the contrary, the results show that some of the waste management practices have a negative influence in the environment. The study didn’t consider epidemiological evidences concerning public health, economy and pollution of the studied cities due to nonexistence or unreliable reliable information. Instead, data on country performance indicators for public health (perinatal mortality, adult mortality, life expectancy at birth and healthy life expectancy, an economic indicator (Gross Domestic Product/capita) and environmental indicators (ecological footprint / capita and  CO2-emission/capita were used. In addition, some other country characterization parameters were chosen (persons/km2, % urban population).

scholarly journals Impact of Human Capital on Employment and Economic Growth in Developing Countries

2019 ◽  
Vol 5 (3) ◽  
Author(s):  
Ruhma Khan ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Life Expectancy ◽  
Labour Force ◽  
Random Effect ◽  
Value Added ◽  
Vital Role ◽  
Gdp Growth ◽  
Employment Opportunities ◽  
The Impact

Human Capital plays a vital role in increasing GDP growth and creating more employment opportunities. The major objective of this research paper is to analyze the impact of Human Capital on GDP Growth and Employment in developing countries using Panel Data for the period of 1996-2018. To measure the Human Capital, we have employed two proxy variables i.e. life expectancy and education expenditure. The variables of Labour force, capital formation, inflation, agriculture and manufacturing value added are used as controlled variables in the study. The fixed effect and random effect models are used in this study. The empirical results show that human capital variables (life expectancy and education expenditures) are found significant and hence contribute as an engine of growth and employment opportunities in developing countries

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