Impact Analysis of Changes in Human Resource Capital on Economic Development - from Gravely Underdeveloped to Highly Developed Societies

This research encompasses 177 countries around the world with the data on human resource variables for the year 2005. The countries have been put into four groups: gravely underdeveloped, developing, developed, and highly developed. The research has looked into the variables Human Development Index, population, population over 65 years of age, primary education enrolment, investment into secondary education, investment into tertiary education, investment into research and development, Gender–Related Development Index and productivity increase, and analyzed how they influence the economic growth rate. This means that the impact of changes in the observed variables is analyzed, i.e. how they influence the standard of living and level of development in countries of the world. The main hypothesis is that investing in people, i.e. in primary, secondary and tertiary education will bring long-term positive effects on social growth and development, thus contributing to the level of development and overall standard of living. Another hypothesis is that, depending on the development level, human capital and education will exert different influence on GDP per capita, which indicates that a number of economic variables play a major role on the effects of education.