Measuring the Impact of Human Capital Promotion on Economic Growth in Selected Countries of OPEC
Subject Areas : Entrepreneurship and Mnagement of Knowledge-based Firms
Roya
Al emran
1
Seyed Ali
Al Emran
2
Keywords: Human Capital, Education, Economic Growth, Panel Data,
Abstract :
One of the most important discussions in recent decades is human capital. Human capital, or in other words, quality of labor or institutionalization of knowledge in human, increases production and economic growth. Although human capital has been discussed since the classical period in economics , modeling and presentation of national models of economic growth, in which, human capital is considered, captured the attention of researchers in recent decades. In classical models, production was assumed to be the function of labor and capital; however, the quality of labor or human capital must be also considered in this function as an effective factor. The impact of human capital and technological knowledge on economic growth is commonly accepted. This study aims to measure the impact of human capital promotion on economic growth in selected countries of OPEC. Economists have presented different indicators for measuring human capital, one of them is the amount of government expenditure on education. In this study, the growth rate of government total education spending, along with other influential variables (R&D expenditure, Investment) are analyzed through the panel data approach for the period of 1998 to 2007.The research results of this method, indicate that the impact coefficient of all variables are confirmed by theoretical bases, coefficients for all variables are significant, and human capital has a positive effect on economic growth. According to the research findings, improving human capital by increasing labor skills and capabilities, which leads to increase in productivity and production, along with enhancing research and development expenditure is recommended in order to achieve higher economic growth.