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Human Capital, Social Capabilities and Economic Growth

Author

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  • Muhammad Ali

    (Friedrich Schiller University Jena, Faculty of Economics and Business Administration)

  • Abiodun Egbetokun

    (National Centre for Technology Management Federal Ministry of Science and Technology, Nigeria, and Tshwane University of Technology, Pretoria South Africa)

  • Manzoor Hussain Memon

    (Social Policy and Development Centre (SPDC), Karachi, Pakistan, and Applied Economics Research Centre, University of Karachi, Pakistan)

Abstract

In this paper we show that inconclusive results in previous empirical studies on human capital and growth might be due to omitted variable bias. Using data for about 130 countries, we show that after inclusion of variables related to the social capabilities concept of Abramovitz (1986) i.e. economic opportunities and quality of legal institutions, the human capital variable turns out to be significant. We also show that economic opportunities significantly moderate the relationship between human capital and growth. The results are robust to different variants of indices for economic opportunities and the quality of legal system.

Suggested Citation

  • Muhammad Ali & Abiodun Egbetokun & Manzoor Hussain Memon, 2016. "Human Capital, Social Capabilities and Economic Growth," Jena Economics Research Papers 2016-013, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2016-013
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    References listed on IDEAS

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    More about this item

    Keywords

    Human Capital; Economic Growth; Economic Opportunities; Social Capabilities;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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