engleski

Human Capital as a Source of Growth - Myth or Reality?

This paper investigates whether country&#8217 ; s economic growth is related to changes in human capital stock based on the theory of the endogenous growth models. The results obtained from the analysis of the achieved growth rate for the period 1952-1990. in Croatia based on the data of the Croatian Statistical Office suggest that investments in education have strong positive impact on country&#8217 ; s economic growth. What is more important, investments in fixed assets (physical capital) and labour are negatively related to output return to scale. Through econometric endogenous growth model we proved that human capital strongly affects country&#8217 ; s economic growth. This paper provides two additional insights that should be useful in future research on economic growth proving that human capital positively and strongly (highest impact) affects economic growth compared to traditional growth factors.

human capital; growth; endogenous growth model

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