HUMAN CAPITAL AND ECONOMIC GROWTH: EVIDENCE FROM WESTERN EUROPEAN AND CEECS COUNTRIES

Abstract

In the economic literature, human capital is examined as a factor of economic growth by enhancing labor productivity. Human capital increases the marginal product of physical capital, which leads to further accumulation of physical capital, thereby increasing production and economic growth. In this study, the effects of human capital factors on economic growth is examined for European countries for the periods of 2008 to 2017. The European countries are categorized into two groups according to their location. The human capital factors to be tested include educational and training side of human capital. Panel data analysis is used for the estimation of the relationship. It is concluded that the quality of mathematics and science schools has a positive effect on the growth of CEECs and the extension of staff training has a positive effect on growth in Western European countries.

Keywords

• Human Capital
• Economic Growth
• European Countries
• CEECs
• Panel Data

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