Track: E-Business and E-Commerce

Abstract

Human capital is becoming an increasingly important factor in rural economic development. Economic research, however, has not provided clear empirical support for the relationship between human capital investment and economic growth. This paper applies to stock and flow concepts to human capital and suggests an operational approach for using stock and course concepts to analyse the impact of human capital investments through education on economic growth. This paper has two main goals. First, assess and measure gaps in human capital stock in this country. It shows how effectively the different regions improve human capital stock and how long it will take to bring developing countries up to date with current levels of human capital in industrialized countries. In contribution to the occupation of human capital economic growth, the proposed employment decomposition method growth is also affected by the development of human capital gross output per worker. The proposed method introduces job growth broken down by job growth elasticity. Assume employment growth increases with human capital elasticity will decrease, making the economy less labor-intensive, leading to higher economic growth. The proposed method emphasizes micro links between human capital and the labor market. This work aims to examine the relationship between human capital and economic development. The study analyzes datasets from previous works, reviews previous literature, and draws some conclusions on human capital and economic growth. The paper summarizes articles on human capital in terms of the theoretical framework of economic growth theory, the neo-classical growth model, the Solow growth production function, the new endogenous theory, and empirical evidence on the relationship and causal link between human capital and economic growth. Assessing the literature on human capital and economic growth will serve as a comprehensive literature guide to policy formulation and implementation in the short and long run of developmental goals for any region.