engleski

How important is human capital for growth in reforming economies?

The aim of the paper is to broaden the research on human capital providing new evidence that human capital matters for economic growth in reforming economies. We propose a new model for measuring human capital. An advantage of the proposed model consists in international comparability ; money metric scale and more importantly provide solid evidence on human capital significance for economic growth. This new approach in measuring human capital proved robust to the spurious regression problem involving human capital. Study results shows that human capital is important for growth and that large educational investments are essential to boost accumulation.

economic growth; human capital; education; solow residual; endogenous growth

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