The Role of the Human Capital in the Corruption-Economic Growth Nexus

2020 ◽  
Vol 11 (4) ◽  
pp. 60-79
Author(s):  
Terzi Chokri ◽  
El Ammari Anis
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Technical Progress ◽  
Physical Capital ◽  
Short Term ◽  
Long Run ◽  
Negative Effect ◽  
Outstanding Result

This article examines the corruption effects on economic growth in Tunisia during the period 1987 to 2016. The model used in this study is an extension of Solow's model by defining corruption in the field of technical progress. In order to delineate the role of the human capital in corruption, the study sets out to estimate the model firstly in the absence and in the presence of human capital. One outstanding result of VECM estimations is that, in the long run, the human capital plays a key role in the increase of the effect of the total corruption and the decrease in the effect of the growth of the population without effecting a change in the physical capital. In the short term, human capital allows to transform the negative effect of the delayed variable output into a positive one. It also increased the effect of total corruption and made the effect of physical capital positive.

Capital accumulation and growth in Hungary, 1924–2006

2011 ◽  
Vol 61 (2) ◽  
pp. 143-164 ◽  
Author(s):  
B. Leeuwen ◽  
P. Földvári
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Volume Index ◽  
Growth Accounting ◽  
Simple Method ◽  
Long Run ◽  
Over Time

The objective of this paper is to analyse the role of both human and physical capital in economic growth in Hungary during the 20th century by extending the already available data on physical and human capital. Besides the standard measure for the volume of human capital, we develop a simple method to estimate the value of the human capital stock in Hungary between 1924 and 2006. While the volume index slowly grows over time, the value of human capital shows a decline during the late socialist period. Applying the value of human capital in a growth accounting analysis, we find that the Solow residual has no long-run effect on economic growth anymore.

Interactive effects of human capital in finance–economic growth nexus in Sub-Saharan Africa

2018 ◽  
Vol 45 (6) ◽  
pp. 1192-1210 ◽  
Author(s):  
Muazu Ibrahim
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Interactive Effect ◽  
Financial Sector ◽  
Content Type ◽  
Long Run ◽  
The World ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to examine the interactive effect of human capital in financial development–economic growth nexus. Relative to the quantity-based measure of enrolment rates, the main aim was to determine how quality of human capital proxied by pupil–teacher ratio influences the relationship between domestic financial sector development and overall economic growth. Design/methodology/approach Data are obtained from the World Development Indicators of the World Bank for 29 sub-Saharan African (SSA) countries over the period 1980–2014. The analyses were conducted using the system generalised method of moments within the endogenous growth framework while controlling for country-specific and time effects. The author also follows Papke and Wooldridge procedure in examining the long-run estimates of the variables of interest. Findings The key finding is that, while both human capital and financial development unconditionally promotes growth in both the short and long run, results from the interactive terms suggest that, irrespective of the measure of finance, financial sector development largely spurs growth on the back of quality human capital. This finding is also confirmed by the marginal and net effects where the interactive effect of pupil–teacher ratio and indicators of finance are consistently huge relative to the enrolment. Statistically, the results are robust to model specification. Practical implications While it is laudable for SSA countries to increase access to education, it is equally more crucial to increase the supply of teachers at the same time improving on the limited teaching and learning materials. Indeed, there are efforts to develop rather low levels of the financial sector owing to its unconditional growth effects. Beyond the direct benefit of finance, however, higher growth effect of finance is conditioned on the quality level of human capital. The outcome of this study should therefore reignite the recognition of the complementarity role of human capital and finance in economic growth process. Originality/value The study makes significant contributions to existing finance–growth literature in so many ways: first, the auhor extend the literature by empirically examining how different measures of human capital shape the finance–economic growth nexus. Through this the author is able to bring a different perspective in the literature highlighting the role of countries’ human capital stock in mediating the impact of financial deepening on economic growth. Second, the author makes a more systematic attempt to evaluate the relative importance of finance and human capital in growth process while controlling for several ancillary variables.

scholarly journals Population and Economic Growth Under Different Growth Engines

2017 ◽  
Vol 18 (2) ◽  
pp. 182-211 ◽  
Author(s):  
Alberto Bucci ◽  
Xavier Raurich
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Long Run

Abstract Using a growth model with physical capital accumulation, human capital investment and horizontal R&D activity, this paper proposes an alternative channel through which an increase in the population growth rate may yield a non-uniform (i.e., a positive, negative, or neutral) impact on the long-run growth rate of per-capita GDP, as available empirical evidence seems mostly to suggest. The proposed mechanism relies on the nature of the process of economic growth (whether it is fully or semi-endogenous), and the peculiar engine(s) driving economic growth (human capital investment, R&D activity, or both). The model also explains why in the long term the association between population growth and productivity growth may ultimately be negative when R&D is an engine of economic growth.

scholarly journals The Effect of Health Indicator on Economic Growth of Iran

2016 ◽  
Vol 12 (2) ◽  
pp. 32
Author(s):  
Asma Rashki Kemmak
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Work Force ◽  
Health Index ◽  
Short Term ◽  
Distributed Lag ◽  
Economic Production ◽  
Capital Growth

<p class="a"><span lang="EN-US">The most important factors in the economic production subordinating, are work force and human capital. These factors and their functions depend on the role of hygiene, individual health and related index in improving the economy of a country. Therefore, one economic growth stimulating factor can be evaluated by using health index thorough effecting labor and human capital. Accordingly, this paper tries to study the effect of health index on economic growth during 1975 to 2012 and it does this by self-explanatory approach with distributed lag (ARDL) and the estimated long-term and short-term effects of these measures on economic growth. Results show the fact that health index related variables like fertility rate, life expectancy will bring economic index and capital growth increasing and it leads to more economic growth. These results are available in long-term and short-term period.</span></p>

Human Factor and Economic Growth in Conditions of Post-industrialization

2004 ◽  
pp. 85-96
Author(s):  
S. Egorov
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Development ◽  
Technical Progress ◽  
Human Factor ◽  
Industrial Society ◽  
Wage Level ◽  
State Technical ◽  
Post Industrial

The increase of the role of human factor in post-industrial society and influence of that shift on the theory of economic growth are examined in the article. Special attention is paid to transformation of labor and capital. The influence of the size of the state, technical progress, educational system and wage level on rates of economic development is considered. The author examines the basic opportunities of increasing the value of human capital as the base of sustainable economic development of Russia.

Investment in Physical, Human Capital, Economic Growth and Life Expectancy in Bangladesh

2018 ◽  
Vol 19 (2) ◽  
pp. 251-269 ◽  
Author(s):  
Biswajit Maitra
Keyword(s):  
Health Care ◽  
Human Capital ◽  
Life Expectancy ◽  
Public Investment ◽  
Decisive Role ◽  
Physical Capital ◽  
Wald Test ◽  
Ardl Model ◽  
Long Run

This article studies the efficacy of the public investment in human capital and physical capital to raise income in Bangladesh over the period 1980–2016. This article also assesses whether the investment in human capital and income have raised life expectancy of the country. The Johansen cointegration test identifies a long-run relation of income with investment on education, health care and physical capital. The error correction mechanism (ECM) based on the cointegrating relation followed by the Wald test of Granger causality has found that these investments have caused income to rise with some lag periods. Robustness of these findings is confirmed by involving an autoregressive distributed lag (ARDL) model of cointegration followed by its ECM representation. On the other hand, the Johansen and ARDL methods of cointegration followed by their ECMs have also found a long-run relation of life expectancy with the investment in education, health care and income. A decisive role of the investment in health care and income on life expectancy is observed, while an unusual negative role of the investment in education is also found. However, positive value of the long-run coefficients of the education and health-care investments of the ECM-ARDL model indicate some long-run favourable impact of these investments on life expectancy in Bangladesh. JEL: I26, I15, C32

The composition of productive government expenditure

2008 ◽  
Vol 1 (1) ◽  
pp. 57-83 ◽  
Author(s):  
Goncalo Monteiro ◽  
Stephen J. Turnovsky
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Government Spending ◽  
Public Investment ◽  
Government Expenditure ◽  
Physical Capital ◽  
Content Type ◽  
Trade Offs ◽  
Long Run ◽  
Productive Government Spending

PurposeRecent research supports the role of productive government spending as an important determinant of economic growth. Previous analyses have focused on the separate effects of public investment in infrastructure and on investment in education. This paper aims to introduce both types of public investment simultaneously, enabling the authors to address the trade‐offs that resource constraints may impose on their choice.Design/methodology/approachThe authors employ a two‐sector endogenous growth model, with physical and human capital. Physical capital is produced in the final output sector, using human capital, physical capital, and government spending on infrastructure. Human capital is produced in the education sector using human capital, physical capital, and government spending on public education. The introduction of productive government spending in both sectors yields an important structural difference from the traditional two‐sector growth models in that the relative price of human to physical capital dynamics does not evolve independently of the quantity dynamics.FindingsThe model yields both a long‐run growth‐maximizing and welfare‐maximizing expenditure rate and allocation of expenditure on productive capital. The welfare‐maximizing rate of expenditure is less than the growth‐maximizing rate, with the opposite being the case with regard to their allocation. Moreover, the growth‐maximizing value of the expenditure rate is independent of the composition of government spending, and vice versa. Because of the complexity of the model, the analysis of its dynamics requires the use of numerical simulations the specific shocks analyzed being productivity increases. During the transition, the growth rates of the two forms of capital approach their common equilibrium from opposite directions, this depending upon both the sector in which the shock occurs and the relative sectoral capital intensities.Research limitations/implicationsThese findings confirm that the form in which the government carries out its productive expenditures is important. The authors have retained the simpler, but widely employed, assumption that government expenditure influences private productivity as a flow. But given the importance of public investment suggests that extending this analysis to focus on public capital would be useful.Originality/valueTwo‐sector models of economic growth have proven to be a powerful tool for analyzing a wide range of issues in economic growth. The originality of this paper is to consider the relative impact of government spending on infrastructure and government spending on human capital and the trade‐offs that they entail, both in the long run and over time.

scholarly journals Capital formation and economic growth under central planning and transition: A theoretical and empirical analysis, ca. 1920–2008

2015 ◽  
Vol 65 (1) ◽  
pp. 27-50 ◽  
Author(s):  
Péter Földvári ◽  
Bas van Leeuwen ◽  
Dmitry Didenko
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Growth Models ◽  
Physical Capital ◽  
Early Years ◽  
National Accounts ◽  
System Of National Accounts ◽  
Long Run ◽  
Physical Capital Accumulation

According to the consensus view, it was primarily physical capital accumulation that drove economic growth during the early years of state socialism. Growth models incorporating both human and physical capital accumulation led to the conclusion that a high physical/human capital ratio can cause a lower economic growth in the long run, hence offering an explanation for the failure of socialist economies. In this paper, we show theoretically and empirically that according to the logic of the socialist planner, it was optimal to achieve a higher physical to human capital ratio in socialist countries than in the West. Using a VAR analysis, we find empirical confirmation that within the Material Product System of national accounting, the relative dominance of investment in physical capital accumulation relative to human capital was indeed more efficient than under the system of national accounts.

Does female human capital contribute to economic growth in India?: an empirical investigation

2017 ◽  
Vol 44 (11) ◽  
pp. 1506-1521 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Physical Capital ◽  
Variance Decomposition ◽  
Content Type ◽  
Indian Economy ◽  
Education And Health ◽  
Long Run ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of female human capital on economic growth in the Indian economy during 1970-2014. Design/methodology/approach The paper employs Ng-Perron unit root test to check the order of integration of the variables. The study also used ARDL-bounds testing approach and the unrestricted error-correction model to investigate co-integration in the long run and short run; Granger’s causality test to investigate the direction of the causality; and variance decomposition test to capture the influence of each variable on economic growth. Findings The study constructed a composite index for both male and female human capitals by taking education and health as a proxy for human capital. The empirical findings reveal that female human capital is significant and positively related to economic growth in both short run and long run, while male human capital is positive but insignificant to the economic growth; same is the case for physical capital, it implies that such investment regarding female human capital needs to be reinforced. Further, there is an evidence of a long-run causal relationship from female human capital, male human capital and physical capital to economic growth variable. The results of variance decomposition show the importance of the female human capital variable is increasing over the time and it exerts the largest influence in change in economic growth. Research limitations/implications The empirical findings suggest that the Indian economy has to pay attention equally on the development of female human capital for short-run as well as long-run growth of the economy. This implies that the policy makers should divert more expenditure for developing support for female education and health. Originality/value To the best of authors’ knowledge, this is the first attempt to study the relationship between female human capital and economic growth in the context of the Indian economy.

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