FORMATION OF HUMAN CAPITAL AND THE ROLE OF ITS COMPONENTS IN PROVIDING ECONOMIC DEVELOPMENT

2020 ◽  
Vol 4 (10) ◽  
pp. 3-7
Author(s):  
E. O. POCHKIN ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Political Development ◽  
Political Action ◽  
High Growth ◽  
Well Being ◽  
Vital Role ◽  
Close Link ◽  
Individual Level

The article shows that the formation of human capital means actions taken to enrich skills, education and experience, which is very important for any economic and political development of the country. An effective tool for resource development is the development of self – development skills at the individual level. Human development requires economic growth, because without it, sustainable improvement of human well-being is impossible. Better health leads to better human development and economic growth. Human health plays a vital role in economic growth. High growth rates do not automatically lead to higher levels of human develop-ment. Here again, decisive political action is needed to establish a close link between economic growth and human development.

Public Financing of Human Development in India: A Review

2021 ◽  
Vol 15 (1) ◽  
pp. 62-81
Author(s):  
Sacchidananda Mukherjee ◽  
Shivani Badola
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Public Investment ◽  
Public Financing ◽  
Economic Activities ◽  
Economic Opportunities ◽  
Goods And Services ◽  
Public Transfers ◽  
Distribution Of Resources

Role of public financing of human development (HD) is inevitable, especially for developing countries like India where access to resources and economic opportunities are not equitably distributed among people. Governments aim to achieve equity in distribution of resources through allocative and redistributive policies whereas macroeconomic stabilisation policies aim to achieve higher economic growth and stability in the price level. Expenditure policies of the governments envisage in delivering larger public goods and services to enable people to take part in economic activities by investing in human capital and infrastructure developments. Progressivity of the tax system helps in achieving equity by redistribution of resources among people. Being merit goods, expenditures on education, health, and poverty eradication make it a case for public investment which empowers people to improve human capital. The benefit of universal economic participation is expected to contribute in larger mobilisation of public resources over time. Lack of economic opportunities and earning a respectable income may increase dependence on public transfers which may reduce fiscal space of the governments to finance programmes to promote overall economic growth. The objective of this article is to review existing studies on public financing of HD in India and highlight emerging challenges.

scholarly journals Can Human Development Bonds Reduce the Agency Costs of the Resource Curse?

2019 ◽  
Vol 12 (1) ◽  
pp. 191-245
Author(s):  
Luke Sperduto
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Empirical Research ◽  
Resource Curse ◽  
Sovereign Bond ◽  
Weak Institutions ◽  
Potential Benefits ◽  
Rich Countries ◽  
Significant Support

Abstract Especially in resource rich countries with weak institutions of governance, the interests of governments often diverge from those of their citizens and creditors. Sovereign bond contracts can potentially help align these interests, to the benefit of all parties, by indexing payment obligations to improvements in the health and education of the issuer’s citizenry. To that end, this Article proposes a Human Development Bond (HDB) with a variable coupon schedule that both insures issuers against recessions and incentivizes them to encourage investment in human capital when economic growth is strong. The potential benefits of such an instrument can only be realized, however, with significant support from the international community. Moreover, further empirical research is needed to calibrate the HDB’s coupon schedule to provide well-timed and appropriately sized debt relief.

scholarly journals On the economics of happiness: the influence of income and non-income factors on happiness

2013 ◽  
Vol 16 (1) ◽  
pp. 39-51 ◽  
Author(s):  
Darma Mahadea
Keyword(s):  
Economic Growth ◽  
Well Being ◽  
Working Environment ◽  
Focused Attention ◽  
Small Contribution ◽  
Individual Level ◽  
National Economic ◽  
Economics Of Happiness ◽  
Economic Objective

The quest for individual happiness and a better life for all is an important economic objective in countries as different as South Africa and France or Zimbabwe and Bhutan. Economists have focused attention on the effects of consumption, income and economic growth or development on well-being and whether economic growth can be the sole basis for delivering prosperity (Dutt & Radcliff , 2009; Jackson, 2010).  The search for happiness is an important individual and national economic goal.  In the Benthamite utilitarian tradition, happiness is the sum of all pleasures and pains. People often obtain or perceive their happiness from what they have in comparison with others.  At the macroeconomic level, more happiness may come from a sustained growth in GDP that enables households to enjoy an improved quality of life, with rising income, consumption and employment opportunities.  At the microeconomic or individual level, more income may also enable people to live happier and fuller lives relative to those who are poor.  But this accounts for only a small contribution to happiness. Life circumstances, such as marital status, health, having children and the nature of the working environment statistically make a greater contribution to happiness than income.  

Physical Activity: An Underestimated Investment in Human Capital?

2013 ◽  
Vol 10 (3) ◽  
pp. 289-308 ◽  
Author(s):  
Richard Bailey ◽  
Charles Hillman ◽  
Shawn Arent ◽  
Albert Petitpas
Keyword(s):  
Physical Activity ◽  
Human Capital ◽  
Life Course ◽  
Human Development ◽  
Well Being ◽  
Domain Specific ◽  
Capital Growth ◽  
To Come ◽  
Healthy Functioning ◽  
The Life Course

Despite the fact that physical activity is universally acknowledged to be an important part of healthy functioning and well-being, the full scope of its value is rarely appreciated. This article introduces a novel framework for understanding the relationships between physical activity (and specifically sport-related forms of physical activity) and different aspects of human development. It proposes that the outcomes of physical activity can be framed as differential ‘capitals’ that represent investments in domain-specific assets: Emotional, Financial, Individual, Intellectual, Physical, and Social. These investments, especially when made early in the life course, can yield significant rewards, both at that time and for years to come. The paper presents a new model—the Human Capital Model—that makes sense of these effects, outlines the different capitals, and briefly articulates the conditions necessary for the realization of Human Capital growth through physical activity.

scholarly journals Regional gap in human capital: determinants of education and urbanization

2021 ◽  
Vol 301 ◽  
pp. 03004
Author(s):  
Aida Guliyeva ◽  
Liliya Averina ◽  
Oleg Grebennikov ◽  
Alexander Shpakov
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Rural Areas ◽  
Urban Areas ◽  
Regional Distribution ◽  
Well Being ◽  
Regional Gap ◽  
Good Proxy ◽  
Effective Development ◽  
Capital Development

This paper studies the regional gap in human capital. Specifically, it focuses on the important determinants of this capital represented by such key factors as education and urbanization. We stress the importance of human capital for the economic growth and show how it can be important for the effective development of both urban and rural areas. This study examines the regional distribution and dynamics of human capital. Human capital is credited with a crucial role in the creation of economic growth. Additionally, we investigate how the exposure to the urban or rural environment affects the educational success of people worldwide. In addition, our paper studies the effects of migration on urbanization and education. Our results show that institutional factors can be a good proxy for explaining the relationship between human capital development and urbanization. Furthermore, it can be concluded that return to education is higher in urban areas compared to rural areas, and higher in highly educated cities compared to smaller towns. All of these creates some important implications for urbanization and education that can be used by the policy-makers and urban and rural planners for narrowing the regional gap in human capital and increasing the overall well-being and economic growth.

scholarly journals Innovations in achieving sustainable economic performance under income inequality

2021 ◽  
Vol 5 (2) ◽  
pp. 146-154
Author(s):  
Inna Cabelkova ◽  
Manuela Tvaronaviciene ◽  
Wadim Strielkowski
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Inequality ◽  
Economic Performance ◽  
Financial Services ◽  
Developing Economies ◽  
Well Being ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact

The negative effect of income inequality on economic growth represents a topic that constitutes a broad topic of research in the standard economic theory. One of the immediate consequences of income inequality is diminished consumption. Many «poor» customers cannot provide sufficient demand for the producers, causing overproduction that might lead to an economic crisis. It constitutes a problem because sustainable economic performance needs to be achieved under the conditions of income inequality. Reducing social and economic inequality in countries is an essential step towards ensuring that no one is left behind. It is also part of the 10th Sustainable Development Goal aimed to reduce it by 2030. Inequality is based on the income distribution between the top 1% and the bottom 99% of households in any given country. The degree of inequality could play a beneficial role if it is driven by market forces and is associated with incentives to increase growth. In developing and emerging countries, greater equality and improvements in living standards are needed to enable populations to flourish. Inequality reduction is one of the most critical steps a government could take to improve the well-being of its population. The income inequality growth increases human capital in poor countries and reduces it in high and middle-income countries. In poorer countries, it increases them, but in higher – and middle-income countries, it reduces them. Income inequality could be reduced by improving human capital and general skill levels, correcting labor-market policies, and making better use of financial services. In turn, sustainable economic growth could reverse the negative effects of inequality, reducing the need for high-wage and higher-earning households. Thus, it provides higher economic growth. This paper discusses three ways to circumvent the impact of decreasing consumption on economic growth adopted in developing economies over the last fifty years, such as increasing exports, providing loans for consumption, and printing new money. The findings showed that none of these methods seem to be sustainable in the long run. Thus novel and innovative mechanisms that would allow our economy to reduce inequality are necessary and need to be put into place.

Institutions, human capital and economic growth in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Akther Uddin ◽  
Md Hakim Ali ◽  
Mansur Masih
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Quantile Regression ◽  
Dynamic System ◽  
Human Development ◽  
Interactive Effect ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
Content Type

Purpose This paper aims to study institutions, human capital and economic growth in developing countries. Design/methodology/approach The study applies dynamic system Generalized Method of Moments (GMM) and simultaneous quantile regression on a panel of 120 developing countries for the period of 1996-2014. Findings The findings show that human development and institutions do have a significant positive effect on economic growth. Interestingly, institutions and human development have a significant negative interactive effect on the economic growth of developing countries. This paper argues that incremental investment in human development would impact economic growth negatively in the presence of weak and dysfunctional institutions because additional stock tends to be employed in rent-seeking and socially unproductive activities. Research limitations/implications The policy makers should bear in mind the critical role played by the institutions and the initial stage of growth of a country in making their education and health policies more effective. Originality/value The most important novelty is the study of various transmission channels: political, economic and financial institutions through which human development affect economic growth in developing countries. This paper also studies the Islamic economic development concept and empirically investigates whether Muslim countries are different from their counterparts. Moreover, this study extends the existing empirical growth literature by simultaneously applying dynamic system GMM and quantile regression techniques.

scholarly journals The Relationship Between Human Development, Tourism and Economic Growth: Evidence From Malaysia

2019 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Yan-Teng Tan ◽  
Pei-Tha Gan ◽  
Mohd Yahya Mohd Hussin ◽  
Norimah Ramli
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Empirical Studies ◽  
Well Being ◽  
Policy Makers ◽  
Remarkable Feature ◽  
Long Run ◽  
The Social ◽  
Social And Cultural Factors ◽  
The Relationship

A remarkable feature of empirical studies is that not many research works investigate the relation between human development and tourism. Although gross domestic product may replace human development to measure economy progress and human well-being in relation to tourism, however, this definition, is narrow, limits to economic side, and ignores the social and cultural factors. To overcome this shortcoming, this study examines the relationship between human development, tourism and economic growth in Malaysia. By using different cointegration approaches, the results indicate that tourism is positively related to human development in the long run. The finding suggests that the known relationship may serve as a guide to policy makers to achieve better development of social and cultural in order to promote the growth.

scholarly journals Resource Rents, Human Development and Economic Growth in Sudan

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 99
Author(s):  
Elwasila Saeed Elamin Mohamed
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Life Expectancy ◽  
Human Development ◽  
Gdp Growth ◽  
Resource Rents ◽  
Long Run ◽  
Development Expenditure ◽  
Natural Resource Rents ◽  
The Government

This study investigates the relationship between natural resource rents, human development and economic growth in Sudan using co-integration and vector error correction modelling (VECM) over the period 1970–2015. Institutions proved to play a role in determining a difference in whether a country is cured or blessed by resource abundance. In the case of Sudan, no time series data is available on institutional quality and is therefore excluded from the analysis. The role of institutions and macroeconomic policies is captured by other variables included in the empirical model. Co-integration tests confirm the existence of a long run equilibrium relationship between resource rents, human development and economic growth in Sudan. Empirical evidence from the estimated VECM shows that economic growth is positively affected by resource rents and development expenditure but surprisingly negatively affected by life expectancy at birth in the short run. In the long run, resource rents, school enrolment, life expectancy and financial development have negative significant effects on economic growth. Only development expenditure is found to affect economic growth positively. Resource rents are found to weaken education and health levels and this is indirectly channeled into negative effects of resource rents on economic growth. These results suggest that the government has been neglecting investments to build up human capital necessary for inclusive growth. Long run Granger causality tests show a unidirectional causal relationship running from resource rents to GDP growth as well as from development expenditure to GDP growth. School enrollment, life expectancy and financial development are found to be negatively Granger causing GDP growth. Long run causal relationships reconfirm that a resource curse exists indirectly mediated by weak human capital. The study recommends that the government should manage natural resource rents with a policy framework supporting creation of a virtuous economic circle between human development and economic growth. If pursued, this would promote sustained, inclusive and equitable growth in Sudan.

Competitiveness, economic growth and human development in Latin American and Caribbean countries 2006-2015

2019 ◽  
Vol 29 (2) ◽  
pp. 139-159 ◽  
Author(s):  
Giovanni E. Reyes ◽  
Alejandro J. Useche
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Latin America ◽  
Human Development ◽  
Latin American ◽  
Well Being ◽  
Content Type ◽  
Real Gdp ◽  
Latin America And Caribbean ◽  
Latin American And Caribbean

Purpose The purpose of this paper is to analyze the performance and the relationship between competitiveness, real gross domestic product (GDP) growth and human development in 20 countries of the Latin America and Caribbean region during the 2006-2015 period. The main argument to uphold here is that – from the perspective of virtuous circle – countries with better conditions of competitiveness are those with better economic performance and with better conditions for human development. Design/methodology/approach Time series data were organized at three levels: individual countries, groups of nations and Latin America and Caribbean as a whole. Indicators used were: index of competitiveness, rates of change in real GDP and Human Development Index. Cluster analysis tests were performed: data ranges were determined and quintiles were established. Countries were ranked in five categories and comparative position matrices were determined for each variable. Linear correlations between indexes were calculated. Linear correlation coefficients were determined in terms of groups of countries and considering Latin America and Caribbean as a whole. Findings Findings revealed that decreasing conditions in competitiveness and economic growth indicators are the representative situation since 2009. The most competitive country in the region is Chile, and the weakest is Venezuela. Nevertheless, all Latin American and Caribbean countries analyzed seem to have made progress in terms of human, economic and social development. Regarding correlations, Dominican Republic showed an inverse relationship between competitiveness and economic growth, while Jamaica and Venezuela showed inverse relationships between competitiveness and human development. At the individual country level, no statistically significant relationship between economic growth and human development was detected. Research limitations/implications Findings highlight the necessity of future research that result in a deeper understanding of the transmission mechanisms between economic and social performance in Latin American and Caribbean countries. Particular reasons at the micro level that explain improvements or deteriorations in competitiveness and human development must also be analyzed. Based on the degrees of freedom, time series could have included more years, but a lack of information was found for some countries. It would also be necessary to observe each particular case considering the type of economy, production characteristics and export/import composition. Practical implications Results complement the existing literature by exploring competitiveness and its relationship with economic and social variables in developing countries. The authors also believe that this paper is relevant for macroeconomic and social policy debates involving competitiveness and human well-being in this region of the world. Originality/value This paper supports an important argument: human well-being and national development must be the ultimate goal of competitiveness. Traditional literature focuses on levels and determinants of competitiveness in developed countries, but it usually does not take into account social and human aspects of the process in developing countries. Little attention has been paid to analyze the relationship between competitiveness and socioeconomic variables in developing countries. Methods and findings of this paper complement the existing literature by studying the relationships among competitiveness, real GDP growth and human development in Latin American and Caribbean countries, using correlation analysis.

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