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A Panel Regression Analysis Of Human Capital Relevance In Selected Scandinavian And Se European Countries

Author

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  • Kokotovic, Filip

    (University college of international relations and diplomacy Dag Hammarskjöld, Zagreb, Croatia)

Abstract

The study of human capital relevance to economic growth is becoming increasingly important taking into account its relevance in many of the Sustainable Development Goals proposed by the UN. This paper conducted a panel regression analysis of selected SE European countries and Scandinavian countries using the Granger causality test and pooled panel regression. In order to test the relevance of human capital on economic growth, several human capital proxy variables were identified. Aside from the human capital proxy variables, other explanatory variables were selected using stepwise regression while the dependant variable was GDP. This paper concludes that there are significant structural differences in the economies of the two observed panels. Of the human capital proxy variables observed, for the panel of SE European countries only life expectancy was statistically significant and it had a negative impact on economic growth, while in the panel of Scandinavian countries total public expenditure on education had a statistically significant positive effect on economic growth. Based upon these results and existing studies, this paper concludes that human capital has a far more significant impact on economic growth in more developed economies

Suggested Citation

  • Kokotovic, Filip, 2016. "A Panel Regression Analysis Of Human Capital Relevance In Selected Scandinavian And Se European Countries," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 7(1), pages 13-24.
    • Handle: RePEc:ris:utmsje:0167
    as

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    References listed on IDEAS

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    7. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
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    Cited by:

    1. Izabela Młynarzewska-Borowiec, 2021. "Does Implementation of the Smart Growth Priority Affect Per Capita Income of EU countries?—Empirical Analysis for the Period 2000–2017," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1345-1366, September.

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    More about this item

    Keywords

    area studies; human capital proxies; economic growth; education expenditure; Sustainable Development Goals;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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