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Human Capital, Innovation and Economic Growth in the EU Countries

Author

Listed:
  • Elena PELINESCU

    (Institute for Economic Forecasting, Romanian Academy.)

  • Carmen PAUNA

    (Institute for Economic Forecasting, Romanian Academy.)

  • Corina SAMAN

    (Institute for Economic Forecasting, Romanian Academy.)

  • Tiberiu DIACONESCU

    (Institute for Economic Forecasting, Romanian Academy.)

Abstract

The importance of human capital for development and innovation is shown by the multitude of studies dedicated to this subject. The paper follows the methodological path from Hanushek’s studies (2013) and Angel de la Fuente and Doménech (2000) adapted to the objective of an analysis at European Union level. The data was extracted form Eurostat database and the UNCTAD Human Development Report for 2019. We apply a mixed effect model with fixed and random effects allowing highlighting the total impact of human capital, variable proxied by the average of years of education. The coefficient for the human capital was found 0.2586, in average, but different for each country. This result is closer to the estimation of Mankiew, Romer and Weil’s study (1992), which found an influence of 49%, lower than the long-term effect of 66% highlighted in the studies conducted by Portela et al. (2004) and by Teulings and Van Rens (2002. Moreover, the model also showed an indirect positive effect for improving the economic growth of human capital, evidenced by its capacity for innovation. The indicators used in this case are the expenditures for research and development per capita and the number of patents applied.

Suggested Citation

  • Elena PELINESCU & Carmen PAUNA & Corina SAMAN & Tiberiu DIACONESCU, 2019. "Human Capital, Innovation and Economic Growth in the EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 160-173, December.
    • Handle: RePEc:rjr:romjef:v::y:2019:i:4:p:160-173
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    Citations

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    Cited by:

    1. Özgür ERSİN & Ayfer USTABAŞ & Tuğçe ACAR, 2022. "The Nonlinear Effects of High Technology Exports, R&D and Patents on Economic Growth: A Panel Threshold Approach to 35 OECD Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 26-44, April.
    2. Monica RAILEANU SZELES & Corina SAMAN, 2020. "Globalisation, Economic Growth and COVID-19. Insights from International Finance," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 78-92, September.
    3. Irina Calugareanu, 2020. "Determination of the Local Development Index of the Republic of Moldova in the Context of the Creation of Innovative Hubs," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 8(3), pages 111-122.

    More about this item

    Keywords

    Human Capital; Innovations; Economic growth; Mixed-effect models;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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