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Investment in Human Capital and Economic Growth in Singapore

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  • Biswajit Maitra

Abstract

Since independence in 1965, the economy of Singapore has transited from a low-income economy to a high-income developed economy. Over the period, the educational policy of the country has been framed consistent with the national economic policy and human capital formation. The article examines whether investment in human capital and employment contributed to economic growth in Singapore over the last three decades. Johansen cointegration tests find a long-run relation among economic growth, human capital investment and employed labour force. The article also enquires the dynamics of economic growth maintained with human capital investment and labor force employment involving a battery of econometric techniques. It is found that both human capital investment and employment contributes to rise in economic growth. Human capital investment at the initial stage has growth-retarding effect and eventually accelerates sustained growth with a gestation lag of 4 years. If the maintained relation persisted over time, study exhibits that human capital innovation would lead to perpetual rise in economic growth. Labour force employment innovation, in this regard, may lead to temporary rise in economic growth.

Suggested Citation

  • Biswajit Maitra, 2016. "Investment in Human Capital and Economic Growth in Singapore," Global Business Review, International Management Institute, vol. 17(2), pages 425-437, April.
    • Handle: RePEc:sae:globus:v:17:y:2016:i:2:p:425-437
    DOI: 10.1177/0972150915619819
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    Cited by:

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    4. Modesta Chinwe Akunede & Geraldine Ejiaka Nzeribe & Uju Regina Ezenekwe, 2022. "Human Capital Development in Nigeria: Determinants and Challenges," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 465-476, October.
    5. Sadam Hussain & Muhammad Shahid Akram & Abdul Ghaffar & Yasmeen Qamar & Waqar Ahmad, 2019. "Impact of Foreign Investment, Labor Force and Interest Rate on Economic Growth: A Case of Pakistan (Under CPEC Project Contribution Countries)," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 369-377, December.
    6. Eric Fosu Oteng-Abayie & Prosper Awuni Ayinbilla & Maame Esi Eshun, 2018. "Macroeconomic Determinants of Crude Oil Demand in Ghana," Global Business Review, International Management Institute, vol. 19(4), pages 873-888, August.
    7. Angkeara Bong & Gamini Premaratne, 2018. "Regional Integration and Economic Growth in Southeast Asia," Global Business Review, International Management Institute, vol. 19(6), pages 1403-1415, December.
    8. Isreal, Akingba Idowu Opeoluwa & Kaliappan, Shivee & Hamzah, Hanny Zurina, 2019. "Impact of Health Capital on Total Factor Productivity in Singapore," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 83-98.
    9. Zhenshan Yang, 2019. "Threshold Effect of Poverty Alleviation Funds on Human Capital Accumulation: A Case Study of Impoverished Counties in China," Sustainability, MDPI, vol. 11(3), pages 1-12, February.
    10. Xiaohao Ding & Yifan Huang & Wenjuan Gao & Weifang Min, 2021. "A Comparative Study of the Impacts of Human Capital and Physical Capital on Building Sustainable Economies at Different Stages of Economic Development," Energies, MDPI, vol. 14(19), pages 1-14, October.
    11. Sakib, S M Nazmuz, 2021. "Factors which are Affecting Human Capital in Singapore," Thesis Commons 38txr, Center for Open Science.

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