Causal Relationship between Human Capital and Economic Growth in European Countries (EU-28): Panel Analysis
International Journal on Emerging Technologies • 2019
Publication Information
Authors
Abdelmajied Fathy E.Y. and Lenar N Safijllin
Keywords
Economic Growth, Human Capital, Panel Data, European countries.
Journal
International Journal on Emerging Technologies
Publisher
International Journal on Emerging Technologies
Volume
10
Issue
2a
Pages
66-70
publication.type
International
Paper Link
Open Link
Supplementary Materials
Not Available
Abstract
The main objective of this study is to examine the empirical relationship between education, labor, and innovation as a proxy human capital and GDP per capita in European countries (EU-28). Our hypothesis is that (1) human capital is positive (significantly) related to the GDP per capita. (2) The human capital plays the same role of physical capital in increasing the real GDP per capita. The statistical methods utilized are the Panel Data (fixed and random effect) Model for (EU-28) through the period from 1995 to 2017. Findings, there is a strong relationship between human capital and real GDP per capita in (EU-28), this the human capital plays an important role in those countries, according to the endogenous economic theory, especially, (MRW model). Also, the paper concludes that human capital plays the same role of physical capital in increasing the real GDP per capita.
Staff Members - Benha University