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.

The Impact of FDI Inflows and Outflows on Economic Growth: An Empirical Study of some Developed and Developing Countries

2019 ◽  
Vol 6 (1) ◽  
pp. 129-157
Author(s):  
Younis Ali Ahmed ◽  
Roshna Ramzi Ibrahim
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Fixed Effects ◽  
Positive Impact ◽  
Developed Countries ◽  
Fdi Inflows ◽  
Panel Data Estimation ◽  
The Impact ◽  
Data Estimation

FDI is an investment including a long-term relationship and reflecting a lasting interest and control of a resident entity in one economy. FDI is a combination of capital, technology, marketing and management. Based on the Neoclassical, Exogenous and modern theories FDI has a positive role in accelerating economic growth and development. Many countries are improving their economy in order to attract FDI.  The main objective of this study is to examine the impact of FDI inflows and outflows on economic growth of developed countries such as (USA, UK and France) and developing countries such as (Malaysia, Turkey and Iran) from (1980 to 2017). To accomplish that, ARDL approach and panel data estimation were used. The empirical findings reveal that the FDI inflows and outflows for developed countries (US and UK) have a positive impact on economic growth (GDP), while the FDI inflows of France have a negative impact. Nevertheless, FDI inflows and outflows for developing countries of (Malaysia, Turkey, and Iran) have a positive impact on economic growth. The result of panel data estimation shows that Fixed effects model is appropriate for estimating the parameters. In conclusion, Developing countries should diversify their FDI inflows and outflows to cover all the sectors and they should benefit from the developed countries’ experiences with higher impact of FDI on economic growth.

scholarly journals Effect of Public Investment on Private Investment and Economic Growth: Evidence From Vietnam by Economic Industries

2018 ◽  
Vol 5 (2) ◽  
pp. 95 ◽  
Author(s):  
Nguyen Thi Canh ◽  
Nguyen Anh Phong
Keyword(s):  
Economic Growth ◽  
Capital Stock ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Private Capital ◽  
Short Term ◽  
State Sector ◽  
The Impact

This study is to assess the impact of public investment on private investment and economic growth in Vietnam based on data from 22 economic industries over a 27-year period (1990-2016) by applying PVAR model combined with GMM. The results show that public investment and state sector investment (including public investment and state-owned enterprise investment for production and business activities) has the same positive impact economic growth in most economic industries in the long term, but state sector investment also creates more growth effects in the short term. Public investment has a cyclical impact on private capital stock (domestic private + FDI capital stock) and FDI investment; it has the effect of boosting domestic private investment, FDI investment in the short and long term. Meanwhile, state-sector investment has decreased the private capital stock in the short term, crowds out domestic private and FDI investments in the short term, and in the long term. Both public investment and state sector investment has the effect of increasing public debt in the long term. Based on these results we have some policy recommendations to increase efficiency of public investment and state sector investment.

scholarly journals Human Capital and Economic Growth: The Role of Governance

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 529-549
Author(s):  
Ali Muhammad ◽  
Abiodun Egbetokun ◽  
Manzoor Hussain Memon
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Positive Impact ◽  
Labour Force ◽  
Related Factors ◽  
Adoption And Diffusion ◽  
Definition Of ◽  
The Impact

Economists agree that human capital is an important determinant of economic growth [Arrow (1962); Aghion and Howitt (1992)]. Human capital-led growth generally concludes the positive impact of the two with the help of existing developed theories and empirical evidences. Nonetheless, the standard empirical result of a direct relationship between human capital (however measured) and economic growth, has been criticised on several fronts. First, the impact of other growth-related factors like quality of education, health of the labour force, inflation, corruption, unemployment, rule of law, etc. should not be ignored. These endogenous characteristics of a country are included in Becker‘s (1993) definition of human capital. In addition, as noted by Abramovitz (1986), social capabilities are important in the adoption and diffusion of technologies but countries differ in social capabilities. Therefore, to the extent to which human capital contributes to economic growth through innovation, its effect is conditioned by the country‘s social capabilities which include factors like quality of institutions and governance.

scholarly journals The Impact of Corruption on Economic Growth in Nigeria

2021 ◽  
Vol 7 (2) ◽  
pp. 27-50
Author(s):  
Muftau Olaiya Olarinde ◽  
Jacob Msonter Jonathan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Positive Impact ◽  
Capital Expenditure ◽  
External Debt ◽  
Series Data ◽  
Long Run ◽  
The Impact ◽  
Bound Test

This study empirically analyses the impact of corruption on economic growth in Nigeria, using time series data for the period 1980-2015 analyzed through the ARDL technique.  The result of the Bound test confirmed the existence of Cointegration among the variables. The ARDL results revealed that corruption has a significant negative influence on economic growth both in the short run and long run. It was further confirmed that external debt, agricultural output, and human capital development positively impact growth while FDI and inflation rate endanger growth, in both the short and long run. The result of the interacting term revealed the damaging influence of corruption on the positive impact of human capital expenditure and external debt on economic growth. Based on the findings of the study, it is obvious that achievement of growth that is sustainable will remain elusive in a corrupt environment. The study, therefore recommends that government should strengthen the activities of the anti-corruption agencies in Nigeria to reduce the rate of corruption.

scholarly journals The impact of human capital on the economic growth of Vietnam’s cities and provinces: a spatial econometrics approach

2020 ◽  
Vol 4 (1) ◽  
pp. First
Author(s):  
Nguyen Van Si ◽  
Le Trung Kien
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Spatial Econometrics ◽  
Positive Impact ◽  
Spatial Econometric ◽  
Investment Capital ◽  
Total Investment ◽  
Per Capita ◽  
The Impact

Human capital is crucial for national economic growth and for local economic growth as well. In an attempt to investigate the effect of human capital on the economic growth in Vietnam’s cities and provinces, the author adopts spatial econometric models of SDM, SAR, SEM for panel data. Human capital is measured by regular expenditure on education and numbers of trained labors in each province/city. The data used in this study is obtained from the Statistical Yearbook of 63 provinces published by the General Statistics Office in the period of 2010 - 2017. The results show that the SDM model for panel data is more suitable than the SAR, SEM models for research data. Moreover, the gross output per capita of a province/city is not only affected by its regular expenditure on education but also by that of neighboring provinces/cities. GDP per capital of a province/city is also affected by the GDP of its neighboring provinces/cities. In addition, control variables such as total investment capital, population size, provincial competitiveness index of local or neighboring provinces also exert a positive impact on the GDP per capita of a province/city. The influence of trained labor on the economic growth of a province/city has not been found.

scholarly journals Impact of Population and Workforce Aging on Economic Growth: Case Study of Taiwan

2019 ◽  
Vol 11 (22) ◽  
pp. 6301
Author(s):  
Wen-Hsin Huang ◽  
Yen-Ju Lin ◽  
Hsien-Feng Lee
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Negative Impact ◽  
Positive Impact ◽  
Population Aging ◽  
Retirement Pension ◽  
Workforce Aging ◽  
Aged Society ◽  
The Impact

Taiwan’s population is aging at a fast pace, and its aged society is expected to transition into a hyper-aged society within eight years. Population aging has been a matter of international concern; however, there remain differing views about its economic impact. Thus, this study aims to examine the impact of population and workforce aging on Taiwan using quarterly data from 1981–2017. The empirical results demonstrate that an aging workforce has a significantly positive impact on the rate of economic growth. However, the old-age dependency ratio has a significantly negative effect on economic growth. The empirical findings indicate that human capital is essential for total factor productivity (TFP) growth and that workforce and population aging mainly impact productivity through TFP. Accounting for policy factors, increasing the supply of the eldercare workforce and foreign manpower contribute toward countering the negative impact of an aging population on national economic growth. Policies on retirement, pension systems, health care, and human capital accumulation that target the aged population are discussed, accompanied by policy suggestions.

scholarly journals Impact of Foreign Direct Investment on Economic Growth in Ethiopia

2021 ◽  
Vol 4 (10) ◽  
pp. 56
Author(s):  
Abdillahi Nedif Muse ◽  
Saidatulakmal Mohd
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Investment ◽  
Positive Impact ◽  
Vector Autoregressions ◽  
Government Consumption ◽  
Long Run ◽  
The Impact

This article analyses the impact of foreign direct investment (FDI) on Ethiopia’s economic growth. For this purpose, it uses Vector Autoregressions (VARs) model for the period comprised by years 1981-2017. It finds that FDI had a significant positive impact on Ethiopia’s economic growth for both the short and long-run periods. Adequate human capital and stable macroeconomic envirornment have catalysed the contribution of FDI to economic growth. Gross fixed capital formation and government consumption exerted a negative and significant effects on economic growth during the period of interest. Moreover, the study reveals that there is no causal relationship between FDI and economic development. Ethiopia needs to open up the economy and restructure the financial sector to attract foreign multinational companies (MNC), especially in the manufacturing and agro-industry sectors. Human capital investment should be strength to absorb more foreign direct investment and transform the agricultural-based economy to a modern one. Effective budgeting system and prioritisation of government consumption will support a more rapidly growing economy.

scholarly journals Assessing the Impact of the Digital Economy on Green Total Factor Energy Efficiency in the Post-COVID-19 Era

2021 ◽  
Vol 9 ◽  
Author(s):  
Sisi Zhang ◽  
Xiaoyu Ma ◽  
Qi Cui
Keyword(s):  
Economic Growth ◽  
Energy Efficiency ◽  
Human Capital ◽  
Positive Impact ◽  
Clean Energy ◽  
Ordinary Least Squares ◽  
Digital Economy ◽  
Mediation Effect ◽  
The Impact ◽  
Panel Vector Autoregression

Digital transformation in the energy sector is an essential tool for promoting the construction of a clean energy system in the post-COVID-19 era. Under the background of digital China strategy and sustainable energy transformation in the post-COVID-19 era, it is meaningful to investigate the relationship between the digital economy and green total factor energy efficiency (GTFEE) to better drive the development of the digital economy and improve GTFEE. For this purpose, this study estimates deeply the impact of the digital economy on GTFEE by applying ordinary least squares (OLS), panel vector autoregression (PVAR), panel threshold, and mediation effect models based on panel data of 30 Chinese provinces from 2006 to 2018. The statistical results indicate that digital economy is conducive to improving GTFEE. Digital economy can significantly contribute to GTFEE by improving economic growth level, urbanization level, R&D investment, and human capital. The most interesting finding was that there is also a non-linear relationship between digital economy and GTFEE. The effect of digital economy on GTFEE is shown to be first promoted and then inhibited as digital economy level continues to increase. Further, the positive impact of the digital economy on GTFEE is strengthened with increasing levels of economic growth, urbanization, R&D input, and human capital. Finally, A positive correlation was found between digital economy and GTFEE in the eastern and central regions, but insignificantly in other regions.

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 253-284
Author(s):  
Ranjan Kumar Mohanty ◽  
Sidheswar Panda
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Public Debt ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Structural Var ◽  
Adverse Impact ◽  
Mixed Effect ◽  
Domestic Debt ◽  
The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

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