scholarly journals INVESTMENTS IN HUMAN CAPITAL DEVELOPMENT AND WAGES: RELATIONSHIPS AND PROBLEMS IN LOWER-MIDDLE-INCOME COUNTRIES

2021 ◽  
Vol 7 (1) ◽  
pp. 77-83
Author(s):  
Myroslava Olievska ◽  
Arthur Romanov
Keyword(s):  
Human Capital ◽  
Government Expenditure ◽  
Full Time ◽  
Human Capital Development ◽  
Middle Income ◽  
Middle Income Countries ◽  
Education And Health ◽  
Capital Development ◽  
Human Capital Index ◽  
The Relationship

The purposes of the article are to assess the impact of financing of education and health to human capital development, to consider the relationship among wages and investment in human capital, to establish directions of improvement of the investments in human capital development in Ukraine and other lower-middle-income countries. Methodology. Methodological basis of the research is the study of the dynamics of such indicators as the Human Capital Index 2020, wages, GNI per capita, education expenditure, government expenditure, financing of health, the wages of full-time employees. To solve the problems arising from the purpose of the study, systemic method (when analyzing the relationship of the investments in human capital development and wages), statistical methods of comparisons, economic analysis (when processing statistics), historical method (in the study of the evolution of Human Capital Index, expenditures on health and education), empirical and correlation-regression analysis (in the analysis of the practice of investments in human capital development) have been used. Results. The human capital is a central driver of sustainable growth and poverty reduction. The article proves that high-income countries can better finance the development of human capital; they are the leaders of the Ukraine Index 2020, more human capital in high-income countries is associated with higher earnings for people, higher income for countries, and stronger cohesion in societies. At the same time, the article substantiates that the low level of GNI per capita (3370 USD in Ukraine) and insufficient level of education and health expenditure negatively affect formation of human capital (the 53rd place in the Human Capital Index 2020). On the basis of the study of government and non-government expenditure on education and health, it has been concluded that investments in human capital are the effective tool to increase of the wages of full-time employees. Practical implications. Today human capital gains in many countries are at risk, especially in lower-middle-income countries. Features of the current socioeconomic situation require strengthening of investments in human capital development. The main steps that are necessary to undertake for implementing changes in the investments in human capital development have been determined in the article. They are the following: optimization of state financing of human capital; creation of fiscal space; creation of regional funds for financing human capital development; creation of strategic alliances and partnerships; supporting the demand for education and health care from households. Value/originality. The relationships between investments in human capital development and wages in the lower-middle-income countries are analytically proved. The complex of actions on optimization of financing of human capital has been generalized.

scholarly journals A contribution to the human capital investment debate vis-à-vis economic growth: the case for Nigeria

2021 ◽  
Vol 1 (1) ◽  
pp. 15-28
Author(s):  
Lasbrey ANOCHIWA ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Investment ◽  
Growth Limitation ◽  
Human Capital Development ◽  
Education And Health ◽  
Long Run ◽  
Growth Development ◽  
Capital Development ◽  
The Relationship

Purpose: Human capital development is essentially vital in enhancing economic growth and Nigeria needs to grow. This study investigates the contribution of human capital to growth in Nigeria. Research methodology: We have disaggregated the article's variables into different models, for a better result. We employed the Autoregressive Distribution Lag (ARDL) framework to examine the relationship between the variables. E-views software was used as applied in Akbari, Chude and Chude (2013). Result: The result shows that there exists a long-run relationship between the human capital indices, education and health in Nigeria and economic growth. Though the coefficient is positive but has a statistically insignificant relationship with human capital development and economic growth. Limitation: The study was hindered by the availability of data. Contribution: It is satisfactory to know from the study that human capital is still relevant in explaining growth in Nigeria. Keywords: Human capital, Economic growth, Development

scholarly journals Human Capital Development and Economic Growth Nexus in Zimbabwe

2019 ◽  
Vol 23 ◽  
Author(s):  
Sanderson Abel ◽  
Nyasha Mhaka ◽  
Pierre Le Roux
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Positive Impact ◽  
Labour Force ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
The Relationship

This study empirically examined the relationship between human capital development and economic growth in Zimbabwe for the period 1980 to 2015, using time series analysis techniques of co-integration, error correction model, and Granger causality tests. The study was motivated by changes which have characterised the financing of human capital since the country attained independence. A decade after independence, the government was able to adequately finance the social sectors; however, thereafter government financing has been declining since the adoption of the structural adjustment programme. The findings of this study indicate the existence of a short-run and long-run relationship between human capital development and economic growth in Zimbabwe. On the direction and significance of the relationship, the result is mixed. Human capital development, proxied by government expenditure on health, had a significant positive impact on economic growth—both in the short run and the long run—reaffirming that a healthy labour force will be more productive and efficient. Human capital development, proxied by government expenditure on education, was found to negatively impact economic growth in the long run. In conclusion, a positive relationship between human capital development and economic growth in Zimbabwe was found, although the relationship is weak.

scholarly journals Does human capital development matter in FDI location decisions? A case for Austria

2015 ◽  
Vol 5 (3) ◽  
pp. 26-35
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Human Capital ◽  
Causal Relation ◽  
The Other ◽  
Location Decisions ◽  
Human Capital Development ◽  
Correction Model ◽  
Long Run ◽  
Causality Relationship ◽  
Capital Development ◽  
The Relationship

This paper investigates the relationship between human capital development and foreign direct investment (FDI). In particular, the direction of causality between these two variables is the main focus of this study. This study has been necessitated by the failure by many previous researchers to concur on the causal relationship between FDI and human capital development. Some authors argue that there is a uni-directional causality relationship running from FDI to human capital development whilst others are saying the causality runs the other way round from human capital development to FDI. The other group of authors says there is a bi-directional relationship between these two variables whilst the fourth and last group of authors maintains that there exist no causal relation at all between FDI and human capital development. Using the lagged error correction model (ECM), the study observed that FDI measured by FDI, net inflows (% of GDP) was Granger caused by human capital development (proxied by pupil-teacher ratio) both in the short and long run. However, the null hypothesis which says that FDI Granger caused human capital development was rejected both in the short and long run. The author therefore recommends the intensification of teacher-pupil ratio improvement programmes in order not only to increase FDI inflow but to ensure Austria benefits from that increased FDI inflow

scholarly journals Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kesuh Jude Thaddeus ◽  
Chi Aloysius Ngong ◽  
Njimukala Moses Nebong ◽  
Akume Daniel Akume ◽  
Jumbo Urie Eleazar ◽  
...  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Content Type ◽  
Capital Development ◽  
Macroeconomic Determinants ◽  
The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

scholarly journals Corruption practices and government effectiveness on human capital development in Nigeria

2021 ◽  
Vol 11 (2) ◽  
pp. 88-97
Author(s):  
Oluwatobi O Omotoye ◽  
Zaccheaus, O. Olonade ◽  
Olumide, O. Omodunbi
Keyword(s):  
Human Capital ◽  
Least Square Method ◽  
Least Square ◽  
Human Capital Development ◽  
Persistent Problem ◽  
Government Effectiveness ◽  
Development Indicators ◽  
Capital Development ◽  
The Impact ◽  
The Relationship

The study assessed the impact of corruption practices and government effectiveness (GE) on human capital development (HCD) in Nigeria between the years 2003 and 2020, Panel data from 2003 to 2020 were obtained from the database of United Nations Development Programme, World Development Indicators and CIP and were analysed using the ordinary least square method which is suitable for the dataset. The study found that corruption has a significant relationship with HCD in Nigeria while the relationship between GE and HCD is not significant. The research implication is that the persistent problem of slow and sometimes stagnant HCD and growth in Nigeria can be reversed by improving GE and by reducing corrupt practices in the country. The paper concluded that corruption practices have a very strong influence on HCD in Nigeria, while the relationship between GE and HCD is insignificant. It was recommended that Nigeria should institute stiffer punishments for offenses bothering on corruption practices.   Keywords: Corruption, human capital, development, government effectiveness, Nigeria.

scholarly journals EMPIRICAL ANALYSIS OF THE IMPACT OF KADUNA STATE GOVERNMENT EXPENDITURE ON EDUCATION ON HUMAN CAPITAL DEVELOPMENT

2016 ◽  
Vol 4 (4) ◽  
pp. 542-546
Author(s):  
Yunana Titus Wuyah ◽  
Muhammad Dahiru Ahmad
Keyword(s):  
Human Capital ◽  
State Government ◽  
Primary Schools ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
The State ◽  
Least Square ◽  
Human Capital Development ◽  
Capital Development ◽  
The Impact

This study empirically examine the impact of government expenditure on education on human capital development in Kaduna State over the last 15 years (2000-2015) using econometrics model with Ordinary Least Square (OLS) technique.The paper test for presence of stationary between the variables using Augmented Dickey Fuller (ADF) and autocorrelationusing Durbin Watson statistics. The results reveals all the variables were not stationary in levels except capital expenditure (CE) and Primary schools enrolment (PE) while the rest were stationary at second difference. DW shows presence of serial correlation. The regression results indicated that government expenditure on education have significant impact on human capital development in Kaduna State. It could therefore be recommended that the state government should increase its capital and recurrent expenditure on education, ensure proper management and monitory of funds made for the teachers, constant payment of teachers salaries and allowances in a manner that it will raise the state production capacity. The state should construct addition primary and secondary schools across the state, with modern facilities, and employ more teachers.

Human Capital Investment as a Catalyst for Sustainable Economic Development in Nigeria

2019 ◽  
Vol 5 (5) ◽  
pp. 13-22 ◽  
Author(s):  
Amadi Kelvin Chijioke ◽  
Alolote Ibim Amadi
Keyword(s):  
Human Capital ◽  
Gross Domestic Product ◽  
Capital Investment ◽  
Government Expenditure ◽  
Human Capital Investment ◽  
Nation Building ◽  
Human Capital Development ◽  
Real Gross Domestic Product ◽  
Capital Development ◽  
Budgetary Allocation

Human capital development presupposes investments, activities, and processes facilitating the generation of technical and expert knowledge; skills, health or values that are embodied in people. It implies maintaining an appropriate balance and key massive human resource base and providing an encouraging environment for all individuals to be fully engaged and contribute to organizational or national goals. Human capital development is necessary in order for National development to occur. In addition, human capital development teaches people how to utilize the advantages of diverse thinking styles (analytical and intuitive) so that they achieve the best holistic practical solutions. Human capital development and training are basically the same. This paper aims to examine the meaning of human capital development in relation to nation-building. The authors also took a cursory look at the concept of business education and its roles for sustainable development for nation-building. The study examined human capital investment as a catalyst for sustainable economic environment in Nigeria. The broad objective of the study is to analyze the effect of human capital investment on the Nigerian economy from 1986 to2017. The data used for the study were sourced from the central bank statistical bulletin and national bureau of Statistics. Ordinary Least Squares (OLS) techniques were used to analyze the data. The findings of the study reveal that there is a positive relationship between government expenditure on health and real gross domestic product. The adjusted coefficient of determination (R2) shows that 97.3% of variations in the real gross domestic product is being accounted for by government expenditure on education, government expenditure on health and gross capital formation while the remaining 2.7% is accounted for by variables not included in the model. The study suggests that Nigerian policymakers should pay more attention to the health sector and increase its yearly budgetary allocation to it. Nevertheless, the key to achieving best results lies not in ordinarily increasing particular budgetary allocation but rather in implementing a public expenditure and revenue and ensuring the usage of the allocated fund as transparently as possible.

scholarly journals Surviving through Incubation Based on Entrepreneurship-Specific Human Capital Development: The Moderating Role of Tenants’ Network Involvement

2019 ◽  
Vol 11 (10) ◽  
pp. 2866
Author(s):  
Li Zhang ◽  
Ping Gao ◽  
Yongtao Zhou ◽  
Yuchuan Zhang ◽  
Junhua Wang
Keyword(s):  
Human Capital ◽  
Family Background ◽  
Moderating Effects ◽  
Human Capital Development ◽  
Capital Theory ◽  
Capital Development ◽  
Specific Human Capital ◽  
The Relationship ◽  
Moderating Role

Drawing upon human capital theory and the co-production view of business support processes, this paper investigates the moderating effects of network involvement on entrepreneurship-specific human capital (ESHC) that determines the tenants’ survival in an incubator. Longitudinal data between 2006 and 2009 of 71 ventures located in an incubator in China have been collected and analyzed. The research confirms that network involvement strengthens the influence of entrepreneurial experience on tenants’ successful graduation, but does not impact the relationship between entrepreneurial family background and tenants’ graduation.

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