FACTORS LIMITING INVESTMENT IN HUMAN CAPITAL IN MACEDONIA

There is a strong link among investments in human capital, economic growth and human development. Since human capital (improvements in the quality of human labour) is embodied technical progress in labour (knowledge and skills), the economic development depends on advances in technological and scientific knowledge, economic development depends on the investments in human capital. The first part of the paper outlines the two key concepts related to investment in human capital - the basic economic concept and the human development concept. The second part is related to the limitations regarding the investment in human capital in Macedonia, expressed through four major dimensions: 1) poverty and inequality; 2) economic policy; 3) absence of a clear link between economic growth (GDP per capita) and human quality of life (HDI) and 4) the access of individuals to the capital market and to information.Investment in human capital; Human development; Economic growth and development; Economic policy.

Human capital and regional development

We investigate the determinants of regional development using a newly constructed database of 1569 sub-national regions from 110 countries covering 74 percent of the world’s surface and 97 percent of its GDP. We combine the cross-regional analysis of geographic, institutional, cultural, and human capital determinants of regional development with an examination of productivity in several thousand establishments located in these regions. To organize the discussion, we present a new model of regional development that introduces into a standard migration framework elements of both the Lucas (1978) model of the allocation of talent between entrepreneurship and work, and the Lucas (1988) model of human capital externalities. The evidence points to the paramount importance of human capital in accounting for regional differences in development, but also suggests from model estimation and calibration that entrepreneurial inputs and possibly human capital externalities help understand the data.Human Capital, Development, Regional Economics.

The influence of global intellectualization on human development

In the context of the global intellectualization, human capital is the determining factor in the innovation development and the international competitiveness of countries. In the XXI century. the leading component of human capital are qualitatively new information, communication and network technologies. Particular importance are education and training, professionalism, high level of human resources management, building up, reproduction and human capital development. These factors are the prerequisite for the growth of the competitive advantages of the country in the conditions of globalization

High-tech human capital: Do the richest countries invest the most?

Research and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increase with economic development. We consider the type of human capital mainly used in research labs and show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for other explanatory variables, cross-time error correlations, heteroskedaticity and endogeneity bias. Thus, we establish a stylized fact (about human capital composition) that is a puzzle to economic theory: the ratio of high-tech to low-tech human capital presents an inverted U-shaped relationship with GDP per capita.human capital composition, high-tech human capital, R&D, Development

Free Education: For Whom, Where and When?

This article analyzes the effect of free public education on fertility, private educational investments and human capital accumulation at different stages of economic development. The model shows that when fertility is endogenous parental human capital levels are crucial for implications of free education. At early stages of development, if parental human capital is low, free access to basic education may provide the only chance to leave poverty. In contrast, at advanced stages of development, if parental human capital is high, the availability of free education crowds out private educational investments, increases fertility and may be detrimental for growth.free public education, private education, fertility, human capital, economic growth

Differences in the Development and Investment in Human Capital in the Member States of the European Union

Human capital and knowledge are most important factors of current development processes, contributing to the innovativeness and competitiveness of the economies. The important role of these factors was underlined also in Europe 2020 Strategy. However, due to immaterial character of investment in human capital and because of the high level of decentralization of human capital development policy, these actions are characterized by a relatively low efficiency. Thus, the aim of this paper is firstly to identify the importance of human capital development policy within EU policies. Secondly, it is to identify and conduct a comparative analysis of national differences in human capital development and to identify points of reference for key measures of the development in question. Thirdly, this paper is to specify models of human capital development policy from the perspective of how much involved local authorities are in its implementation and efficiency.Kapitał ludzki i wiedza są dziś najważniejszymi czynnikami rozwoju decydującymi o innowacyjności i konkurencyjności gospodarek. Rola tych czynników została również podkreślona w dokumencie Europa 2020. Jednak z uwagi na niematerialny charakter inwestycji we wzrost wartości kapitału ludzkiego w połączeniu z dużym stopniem centralizacji polityki rozwoju kapitału ludzkiego działania te odznaczają się stosunkowo niskim stopniem efektywności. Stąd celem pracy jest po pierwsze zidentyfikowanie rangi polityki rozwoju kapitału ludzkiego w strategiach UE. Po drugie identyfikacja i analiza porównawcza między krajowych zróżnicowań rozwoju kapitału ludzkiego, wraz ze wskazaniem punktów odniesienia w zakresie kluczowych miar tego rozwoju. Po trzecie natomiast celem pracy jest wskazanie modeli polityki rozwoju kapitału ludzkiego z perspektywy oceny zaangażowania władz samorządowych w jej realizację i efektywność

Community Development and Local Social Capital

While a substantial amount of research has been devoted to showing what social capital does, research explaining social capital itself lags behind. The literature has a long tradition of examining the effect of social capital on local economic growth and development. In this paper we examine whether local economic development can explain the variation in social capital across various geographical clusters in the state of Georgia. We begin by devising a measurement tool, a Human Development Index (HDI), to measure community development. Our social capital measure includes associational memberships, voluntary activities, and philanthropy obtained from the Georgia Social Capital Survey. The findings show that even after accounting for various demographic and economic characteristics, the HDI explains the variation in a number of social capital levels (especially those measured by associational involvement) across various geographical clusters in the state of Georgia.economic development, human development, social capital, Agribusiness, Community/Rural/Urban Development, Institutional and Behavioral Economics, Labor and Human Capital, Public Economics, R00,

High-Tech Human Capital: Do The Richest Countries Invest the Most? (working-paper)

Research and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increases with economic development. We consider the type of human capital mainly used in research labs and show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for other explanatory variables, cross-time error correlations, heteroskedasticity and endogeneity bias. Thus, we establish a stylized fact (about human capital composition) that is a puzzle to economic theory: the ratio of high-tech to low-tech human capital presents an inverted U-shaped relationship with GDP per capita.Human Capital Composition, High-Tech Human Capital, R&D, Development

MODELLING SOCIAL CAPITAL AND GROWTH

This paper proposes three theoretical growth models incorporating social capital, based on varied expositions on the concept of social capital and the empirical evidence gathered to date. In these models, social capital impacts growth by assisting in the accumulation of human capital, by affecting financial development through its effects on collective trust and social norms, and by facilitating networking between firms that result in the creation and diffusion of business and technological innovations. We solve for the optimum allocation of human capital or labor towards social capital formation in each model, and examine their comparative statics and transitional dynamics.Economic Growth; Social Capital; Financial Development; Technological Change; Human Capital