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Human Capital Investment and Economic Competitiveness (Indonesian Competitiveness among ASEAN Countries)

Author

Listed:
  • Saparso
  • Hery Winoto
  • Soegeng Wahyoedi

Abstract

The objective of this paper is to investigate empirically the effects of investment in human capital on the competitiveness of the nation. Investment in human capital, particularly in terms of education, health, research and development, stimulates the economic growth and competitiveness of a country. The innovations developed through research and development (R and D) have been believed to cause the rapid economic growth. Education will also contribute to science and knowledge through R and D which is highly required for economic growth. Using descriptive cross-section data of investment in human capital combined with neoclassical economic thought, the paper investigates the transmission mechanisms of human capital investment to economic competitiveness of nations. The result of this research shows that the increasing growth of investment in human capital is positively correlated with the increase in the competitiveness of a country.

Suggested Citation

  • Saparso & Hery Winoto & Soegeng Wahyoedi, 2019. "Human Capital Investment and Economic Competitiveness (Indonesian Competitiveness among ASEAN Countries)," Business and Economic Research, Macrothink Institute, vol. 9(3), pages 23-37, September.
    • Handle: RePEc:mth:ber888:v:9:y:2019:i:3:p:23-37
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    References listed on IDEAS

    as
    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. repec:ilo:ilowps:487273 is not listed on IDEAS
    3. Aring, Monika., 2015. "ASEAN Economic Community 2015 enhancing competitiveness and employability through skill development," ILO Working Papers 994872733402676, International Labour Organization.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Human capital investment; Competitiveness of the nations; Education; Health; Research and development;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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