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

Year 2022, Volume: 6 Issue: 2, 135 - 146, 15.10.2022

Kıvanç Halil Arıç Siok Kun Sek Vladan Pavlovic Goranka Knezevic

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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