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Human Capabilities and Economic Growth: A Comparative Human Capability Index

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  • Mine Yilmazer

    (Department of International Trade, Celal Bayar University, School of Applied Sciences, Manisa, Turkey,)

  • Serkan inar

    (Department of Banking and Finance, Celal Bayar University, School of Applied Sciences, Manisa, Turkey.)

Abstract

The purpose of this paper is to contribute to research probing the underlying role human capital plays on economic growth in 1985-2011 for 17 developed and developing countries. Firstly, we examined the determinants of human capabilities and formulated a new human capital index (comparative human capability index). Secondly, we analyzed the relationship between human capital and economic growth using the endogenous growth model. Results of the panel cointegration tests support a long-run positive relationship between human capital and economic growth in both developed and developing countries, however, our results show that human capital is more effective in developed countries than in developing countries.

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  • Mine Yilmazer & Serkan inar, 2015. "Human Capabilities and Economic Growth: A Comparative Human Capability Index," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 843-853.
    • Handle: RePEc:eco:journ1:2015-04-01
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    More about this item

    Keywords

    Human Development; Economic Growth; Panel Data;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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