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Impact of Trade and Human Capital on Economic Growth of India: An Empirical Analysis

Author

Listed:
  • Majid Karimzadeh

    (Economics Department, Aligarh Muslim University, India)

  • Behzad Karimzadeh

    (Economics Department, Sistan and Balochistan University, Iran)

Abstract

Trade is the principal channel through which the flow of ideas, knowledge and technology will take place. But it is not clear to what extent the recipient country can take advantage of these variables. Adoption, imitation and production process, by and large, depend on human capital in the recipient country, and also on how the different components of human capital (e.g. on-the-job-training versus academic training) are distributed. This paper uses Ordinary Least Square to investigate relationship between trade, human capital and economic growth. The empirical result shows that there is a significant relationship between trade, human capital and economic growth. The study shows that any progress in human capital will positively affect economic growth. In turn, higher economic growth will lead to more employment, higher income and profit, which means more investment in human capital.

Suggested Citation

  • Majid Karimzadeh & Behzad Karimzadeh, 2013. "Impact of Trade and Human Capital on Economic Growth of India: An Empirical Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(48), pages 201-214, June.
  • Handle: RePEc:rej:journl:v:16:y:2013:i:47:p:201-214
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    References listed on IDEAS

    as
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    7. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.
    8. Svitlana Maksymenko & Mahbub Rabbani, 2011. "Economic Reforms, Human Capital, And Economic Growth In India And South Korea: A Cointegration Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 39-59, June.
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    Cited by:

    1. Rabail Amna Intisar & Muhammad Rizwan Yaseen & Rakhshanda Kousar & Muhammad Usman & Muhammad Sohail Amjad Makhdum, 2020. "Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    2. Marinko Škare & Sabina Lacmanovic, 2015. "Human capital and economic growth: a review essay," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 735-735, May.

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    More about this item

    Keywords

    Trade; Human Capital; Economic Growth; India;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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