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Measuring the Effects of Human Capital on Growth in the Case of Romania

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  • Olimpia NEAGU

    (Vasile Goldis Western University of Arad, Romania)

Abstract

It is obvious that human capital is critical for economic growth. The exploration of the impact of human capital on growth could bring valuable information for policy makers to substantiate their development strategies and to stimulate factors leading to economic growth. The paper aims to investigate the relationships between human capital and economic growth in the romanian economy by analyzing the correlations between statistical variables measuring human capital and economic growth. Using a regression model, it is analyzed the impact of the educational and health capital on the economic output. In the paper, a linear regression model of the relation of human capital to economic growth is subjet of an empirical analysis, firstly, taking into consideration only education as human capital and secondly, incorporating in the model the both components: health and education. A strong correlation between educational variables and GDP, for 1990-2010, was found. The quality of the educational capital has a determinant role in the economic growth, the highly educated people are influencing more the economic output than the secondary educated ones. GDP per capita is negatively correlated with the number of worked hours and positively influenced by the life expectancy. The most important contribution contained by this article refers to the incorporation of the two components of human capital in the same econometric model explaining the economic growth. The added value of paper consists in offering suggestions and orientation for national educational policies.

Suggested Citation

  • Olimpia NEAGU, 2012. "Measuring the Effects of Human Capital on Growth in the Case of Romania," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 83-92.
    • Handle: RePEc:ddj:fseeai:y:2012:i:1:p:83-92
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    References listed on IDEAS

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    Cited by:

    1. Neagu Olimpia & Dumiter Florin & Braica Alexandra & Jimon Ștefania & David Gabriela, 2019. "The Correlation Between Human Capital and Gross Added Value in the Bioeconomy Sectors at the European Union (EU) Country Level," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 29(1), pages 1-20, March.
    2. Farzaneh KHALILI & Majid AFSHARIRAD & Abdolrahim HASHEMI DIZAJ & Mehdi YAZDANSHENAS BAHOGHOGH, 2021. "Spatial Linkage Between Quality Of Institution, Natural Resources Management With Gdp Per Capita In D8 Countries (Durbin Model In Panel Data)," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 239-256, June.
    3. Pribac Loredana & Anghelina Andrei, 2015. "Human Capital - The Effects of Education on Economic Growth Within the European Union," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 25(3), pages 35-44, August.

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    More about this item

    Keywords

    Human capital; Education; Health; Economic growth;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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