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THE LONG-RUN RELATIONSHIP BETWEEN HUMAN CAPITAL AND CURRENT ACCOUNT BALANCES

Year 2022, Volume: 21 Issue: 81, 275 - 290, 14.01.2022

Murat Çetrez

https://doi.org/10.17755/esosder.926854

Abstract

This study aims to find out the long-run relationship between human capital and the current account balances. The panel data analysis is carried out for the time period between 1990 and 2018. 88 developing and developed countries are included in the study. Panel cointegration analysis is applied to test the long-run relationships. The human capital is represented by two indexes. First one is The Institute for Health Metrics and Evaluation (IHME) human capital index. Second one is United Nations human development Index. For both indexes, there are significant and positive long-run relationships between the human capitals with current account balances for high income countries. And there are negative long-run statistically significant relationships for all countries, all countries except industrial countries and all countries except industrial and African countries groups.

Keywords

current account balances human capital panel data analysis panel cointegration analysis

References

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THE LONG-RUN RELATIONSHIP BETWEEN HUMAN CAPITAL AND CURRENT ACCOUNT BALANCES

Year 2022, Volume: 21 Issue: 81, 275 - 290, 14.01.2022

Murat Çetrez

https://doi.org/10.17755/esosder.926854

Abstract

Bu çalışmada beşeri sermaye ile cari işlemler dengesi arasında uzun dönemli ilişkinin varlığı araştırılmıştır. Panel veri analizi 88 gelişmiş ve gelişmekte olan ülke için 1990 ve 2018 yılları için uygulanmıştır. Uzun dömenli ilişkiyi araştırmak için panel eşbütünleşme analizi kullanılmıştır. Beşeri sermaye iki ayrı indeksle temsil edilmiştir. Birincisi Sağlık Ölçüm ve Değerlendirme Enstitüsü’nün beşeri sermaye indeksidir. İkincisi, Birleşmiş Milletler’in insani gelişim indeksidir. İki indeks için de, yüksek gelirli ülkeler grubunda beşeri sermaye ile cari işlemler dengesi arasında pozitif, anlamlı ve uzun dönemli bir ilişki olduğu sonucuna ulaşılmıştır. Sanayileşmiş ülkeler hariç tüm ülkeler, Afrika ve sanayileşmiş ülkeler hariç tüm ülkeler ve tüm ülkeler grubu için ise negatif, anlamlı ve uzun dönemli bir ilişkinin olduğu tespit edilmiştir.

Keywords

cari işlemler dengesi beşeri sermaye panel veri analizi panel eşbütünleşme analizi

References

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  • Alfaro, L., Ozcan, S. K. and Volosovych V. (2008). Why doesn’t Capital Flow from Rich to Poor Countries? An Empirical Investigation. The Review of Economics and Statistics, 90 (2): 347–368.
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  • De La Fuenta, A. and Domenech, R. (2006). Human capital in growth regressions: how much difference does data quality make?. J. Eur. Econ. Assoc. 4 (1), 1–36.
  • De La Fuenta, A. and Domenech, R. (2006). Human capital in growth regressions: how much difference does data quality make?. J. Eur. Econ. Assoc. 4 (1), 1–36.
  • Dunning, J. H. (1977). Trade, location of economic activity and the MNE: a search for an eclectic approach, in Bertil Ohlin, Per-Ove Hesselborn and Per Magnus Wijkman, eds., The International Allocation of Economic Activity. London: Macmillan, 395-418.
  • Dunning, J. H. (1977). Trade, location of economic activity and the MNE: a search for an eclectic approach, in Bertil Ohlin, Per-Ove Hesselborn and Per Magnus Wijkman, eds., The International Allocation of Economic Activity. London: Macmillan, 395-418.
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  • Dunning, J. H. (1988). The eclectic paradigm of international production: a restatement and some possible extensions. Journal of International Business Studies, 19(1): 1-31.
  • Freund, C. L. (2000). Current Account Adjustment in Industrialized Countries. Board of Governors of the Federal Reserve System International Finance Discussion Papers, Number 692.
  • Freund, C. L. (2000). Current Account Adjustment in Industrialized Countries. Board of Governors of the Federal Reserve System International Finance Discussion Papers, Number 692.
  • Gengenbach, C., Urbain, J. and Westerlund J. (2016). Error correction testing in panels with common sthocastic trends. Journal of Applied Econometrics, 31: 982-1004.
  • Gengenbach, C., Urbain, J. and Westerlund J. (2016). Error correction testing in panels with common sthocastic trends. Journal of Applied Econometrics, 31: 982-1004.
  • Gruber, J. and Kamin S. (2005). Explaining the Global Pattern of Current Account Imbalances. Board of Governors of the Federal Reserve System International Finance Discussion Papers, Number 846.
  • Gruber, J. and Kamin S. (2005). Explaining the Global Pattern of Current Account Imbalances. Board of Governors of the Federal Reserve System International Finance Discussion Papers, Number 846.
  • Gruber, J. and Kamin S. (2009). Do differences in financial development explain the global pattern of current account imbalances. Review of International Economics, vol. 17, No. 4, 667-688.
  • Gruber, J. and Kamin S. (2009). Do differences in financial development explain the global pattern of current account imbalances. Review of International Economics, vol. 17, No. 4, 667-688.
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  • Hanushek, E. A. and Shultz, G.P. (2012). Education Is the Key to a Healthy Economy. The Wall Street Journal.
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  • Kheng, V., Sun, S. and Anwar, S. (2017). Foreign direct investment and human capital; a panel data approach. Economic Change and Restuctruring, 50 (4), 341-365.
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Details

Primary Language English
Subjects Economics
Journal Section Research Article
Authors

Murat Çetrez 0000-0001-9567-7644

Early Pub Date January 14, 2022
Publication Date January 14, 2022
Submission Date April 23, 2021
Published in Issue Year 2022 Volume: 21 Issue: 81

Cite

APA Çetrez, M. (2022). THE LONG-RUN RELATIONSHIP BETWEEN HUMAN CAPITAL AND CURRENT ACCOUNT BALANCES. Elektronik Sosyal Bilimler Dergisi, 21(81), 275-290. https://doi.org/10.17755/esosder.926854
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