The Impact of Physical Capital and Human Capital (Level of Education) on Growth in Indonesia

2021 ◽  
Author(s):  
Firman Bunyamin
Keyword(s):  
Human Capital ◽  
Physical Capital ◽  
Level Of Education ◽  
The Impact

The impact of FDI on human capital development in SACU countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Winfried Henok ◽  
Teresia Kaulihowa
Keyword(s):  
Human Capital ◽  
Secondary Level ◽  
Policy Implications ◽  
Supporting Evidence ◽  
Human Capital Development ◽  
Member States ◽  
Content Type ◽  
Level Of Education ◽  
Capital Development ◽  
The Impact

PurposeThis paper aims to examine how FDI trickle down to human capital development in SACU member states.Design/methodology/approachA longitudinal research design and feasible general least squares was used over the periods 1990 and 2018.FindingsThere is supporting evidence that FDI enhances human capital when primary school enrolment rate is used. However, the reverse holds for the secondary level of education. It can be argued that although FDI exhibits a positive effect on primary education, optimal spillovers to human capital development has not been realized. An indication that certain level of human capital may be required to ensure the optimal benefit of FDI or the types of current FDI does not enhance FDI-led-human capital hypothesis.Practical implicationsThe negative effect of FDI toward secondary level of education could be an indication of a weak absorptive capacity. SACU's current dominance of FDI activities toward extractive industries could limit potential benefit of FDI due to capacity constraints. Practical policy implications indicate that SACU member states need to ensure that it attracts FDI toward smart investment that enhances human capital development.Social implicationsThere is need to a gear FDI firms toward corporate social responsibilities that will stimulate secondary education.Originality/valueThe novelty of this paper is twofold. First, it focuses on SACU countries where majority of the people are trapped with poverty and inequality issues. Second, SACU member states have used greenfield FDI as a policy instrument to enhance human capital. However, human capital link remains weak. This creates a need to search for smart FDIs that are committed toward community transformation through human capital development.

Assessing the Impact of Remittances on Schooling: the Mexican Experience

2005 ◽  
Vol 5 (1) ◽  
pp. 1850033 ◽  
Author(s):  
Fernando Borraz
Keyword(s):  
United States ◽  
Human Capital ◽  
Census Data ◽  
The United States ◽  
Level Of Education ◽  
Low Level ◽  
Child Human Capital ◽  
The Impact

This paper analyzes the impact of remittances on child human capital in Mexico. During the 90’s and in particular after the “tequila crisis” Mexican workers increased the remittances that were sent to their homes from the United States. I will analyze the effect of such increasing source of income on child human capital decisions. Contrary to Hanson and Woodruff (2003) the results obtained from Census data indicate a positive and small effect of remittances on schooling only for children living in cities with fewer than 2,500 inhabitants and with mothers with a very low level of education. However its magnitude is not substantial.

The Dynamic Correlation Between Capital Deepening and Total Factor Productivity in China

2020 ◽  
Vol 24 (4) ◽  
pp. 524-531
Author(s):  
Wuliu Zhang ◽  
Keyword(s):  
Human Capital ◽  
Total Factor Productivity ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Structure ◽  
Physical Capital ◽  
Influence Coefficient ◽  
Factor Productivity ◽  
Capital Deepening ◽  
The Impact

The impact of capital deepening on total factor productivity (TFP) is a significant and controversial issue. Based on the calculation of relevant indicators, this study adopts a Bayesian time-varying parameter model, Bayesian quantile regression, and adaptive Bayesian quantile models for in-depth statistical analysis. TFP was found to have a complex non-linear structure, and physical and human capital deepening indicators show a significant upward trend. The deepening of physical capital has a negative impact on TFP, while the deepening of human capital has a positive impact. In the capital deepening structure, the level of TFP has been improved and its structure optimized. Primary human and non-production physical capital deepening has no significant effect on TFP, while secondary human capital deepening has some significant effects on TFP. Tertiary and productive human capital deepening of TFP present two different forms of significant effect: the influence coefficient of the former declines in the increasing quantile and the change is larger, while the latter has a stable negative impact. The results of this study provide insights in terms of the improvement of China’s productivity.

scholarly journals Menelusuri Kembali Peran Investasi Modal Manusia dan Modal Fisik Dalam Meningkatkan Pertumbuhan Produktivitas

2019 ◽  
Vol 8 (3) ◽  
pp. 216
Author(s):  
Hendarmin Hendarmin
Keyword(s):  
Human Capital ◽  
Panel Data ◽  
Capital Investment ◽  
Average Length ◽  
Random Effect ◽  
Participation Rate ◽  
Physical Capital ◽  
Economic Productivity ◽  
West Kalimantan ◽  
The Impact

The purpose of this study is to examine the impact of human capital on the level of economic productivity of regencies/cities in West Kalimantan Province. The data used in this study are panel data from 14 West Kalimantan Province/City Districts during the period 2012-2017 whose research results were analyzed using the Random Effect approach panel data regression analysis. The results of the study explained that the role of hum an capital as measured by the level of education, namely the average length of school (RLS), High School Participation Rate, and health level namely life expectancy (AHH) had a non-significant effect on economic productivity. Whereas physical capital investment (PMTB) has a significant influence on the level of economic productivity. The results of the analysis also show that for the human capital variable it has a smaller magnitude compared to the physical capital investment variable. Based on these results, it is concluded that the impact of human capital is very important in increasing economic productivity in the Regency/City of West Kalimantan Province.

scholarly journals Corruption, Public Expenditure and Human Capital Accumulation

2016 ◽  
Vol 8 (1) ◽  
pp. 17-45
Author(s):  
Spyridon Boikos
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Public Expenditure ◽  
Parametric Method ◽  
Physical Capital ◽  
Human Capital Accumulation ◽  
Linear Effect ◽  
The Public ◽  
The Impact

This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.

Intellectual Capital and Profitability: Evidence from Indian Pharmaceutical Sector

2020 ◽  
Vol 24 (2) ◽  
pp. 204-216 ◽  
Author(s):  
Kanishka Gupta ◽  
Sweta Goel ◽  
Prakash Bhatia
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Value Added ◽  
Physical Capital ◽  
Pharmaceutical Companies ◽  
Time Period ◽  
Panel Data Regression ◽  
Capital Efficiency ◽  
The Impact

Intellectual capital (IC) has gained recognition in enhancing the firms’ value and gain competitive advantage in the developed world. Thus, it is imperative for all stakeholders to have an understanding of its impact on firms’ profitability. The present study aims to analyse the impact of intellectual capital on firms’ profitability of Indian pharmaceutical companies listed in National Stock Exchange (NSE-500) for the time period of 10 years (i.e. 2009–2018). The paper has used modified version of Pulic’s Value Added Intellectual Coefficient, i.e., M-VAIC as a proxy to measure intellectual capital and firms’ profitability as represented by ROA, ROE and EBITDA. In line to analyse the effectiveness, a balanced panel data regression technique has been used. The results of the paper indicate a significant relationship between intellectual capital and firms’ profitability. Also, it is found that human capital, relational capital and physical capital have a significant role in increasing the profitability of the firm. The analysis would help the administration and management of pharmaceutical companies in the composition and organization of intellectual capital, stakeholders in the decisions related to investment and financial specialist for enhancing intellectual capital efficiency and value creation for the firm. Human capital is found to be having a positively significant impact on firms’ profitability; their inclusion and management are suggested for the companies.

Does female human capital contribute to economic growth in India?: an empirical investigation

2017 ◽  
Vol 44 (11) ◽  
pp. 1506-1521 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Physical Capital ◽  
Variance Decomposition ◽  
Content Type ◽  
Indian Economy ◽  
Education And Health ◽  
Long Run ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of female human capital on economic growth in the Indian economy during 1970-2014. Design/methodology/approach The paper employs Ng-Perron unit root test to check the order of integration of the variables. The study also used ARDL-bounds testing approach and the unrestricted error-correction model to investigate co-integration in the long run and short run; Granger’s causality test to investigate the direction of the causality; and variance decomposition test to capture the influence of each variable on economic growth. Findings The study constructed a composite index for both male and female human capitals by taking education and health as a proxy for human capital. The empirical findings reveal that female human capital is significant and positively related to economic growth in both short run and long run, while male human capital is positive but insignificant to the economic growth; same is the case for physical capital, it implies that such investment regarding female human capital needs to be reinforced. Further, there is an evidence of a long-run causal relationship from female human capital, male human capital and physical capital to economic growth variable. The results of variance decomposition show the importance of the female human capital variable is increasing over the time and it exerts the largest influence in change in economic growth. Research limitations/implications The empirical findings suggest that the Indian economy has to pay attention equally on the development of female human capital for short-run as well as long-run growth of the economy. This implies that the policy makers should divert more expenditure for developing support for female education and health. Originality/value To the best of authors’ knowledge, this is the first attempt to study the relationship between female human capital and economic growth in the context of the Indian economy.

scholarly journals PENGARUH HUMAN CAPITAL, STRUCTURE CAPITAL, DAN PHYSICAL CAPITAL TERHADAP KINERJA PERUSAHAAN PERBANKAN DI INDONESIA

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Agustinus Jeneo
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Negative Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Physical Capital ◽  
Return On Equity ◽  
Result Show ◽  
Capital Efficiency ◽  
The Impact

The objective of this study are to analyze the impact of intellectual capital (HumanCapital, Structure Capital and Physical Capital) on company’s financial performance Return on Assets (ROA) dan Return On Equity (ROE). This research used banking company data that listed in Indonesia Stock Exchange (IDX) 2011-2012. The model that used to measure intellectual capital was Pulic model agregatly-using Value Added Intellectual Coefficient (VAIC™) or separately-using Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE), and Physical Capital/ Capital Employed Efficiency (CEE). The result show: (1) Human Capital Efficiency (HCE) not significant  impact on ROA, (2) Human Capital Efficiency (HCE) not significant impact on ROE, (3) Structure Capital Efficiency (SCE) not significant impact on ROA, (4) Structure Capital Efficiency (SCE) negative impact on ROE (5) Physical Capital/Capital Employed Efficiency (CEE) has a positive significant impact on ROA, (6) Physical Capital/Capital Employed Efficiency (CEE) has a positive significant impact on ROE

scholarly journals Relationship Between Human Capital and Technological Innovation Growth of Regional Economy and Psychology of New Entrepreneurs in Northeast China

2021 ◽  
Vol 12 ◽  
Author(s):  
Xingyang Yu ◽  
Mingji Liu
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Northeast China ◽  
Psychological Capital ◽  
New Ventures ◽  
External Environment ◽  
Economic Restructuring ◽  
Physical Capital ◽  
The Impact ◽  
The Relationship

The economic restructuring and rapid rise of the economy in Northeast China have resulted in a proliferation of new ventures. Studying the psychology of new entrepreneurs is conducive to understanding the relationship between human capital and economic growth. The work reported here aims to explore the impact of human capital on economic growth in Northeast China and the influencing factors of psychological capital of new entrepreneurs in the entrepreneurial process. Based on Cobb–Douglas production function, the relationship between labor, physical capital, or human capital and economic growth in Northeast China is analyzed by econometric methods, and a model of human capital and economic growth in Northeast China is constructed. Besides, a psychological capital intervention (PCI) model is proposed to develop the psychological capital of new entrepreneurs, and the psychological quality structure model of entrepreneurial entrepreneurs and its operation mechanism. The results of the empirical analysis demonstrate that the elasticity coefficient of human capital in Northeast China is 0.15902, five times smaller than that of labor and physical capital. Moreover, 70% of new ventures are willing to accept higher education. The fitting degree of using the PCI model to develop the psychological capital of new ventures is only 0.3%. In addition, the modified external environment PCI instead of the external environment PCI model has a huge operating potential in the macro-entrepreneurial environment. In conclusion, the impact of human capital on economic growth in the northeast is smaller than the impact of labor and material capital investment on regional economic growth. The development of human capital and research on the composition and mechanism of psychological quality of entrepreneurial entrepreneurs are of significant theoretical and practical values to promote the economic growth in the northeast.

scholarly journals The Importance of Entrepreneurship Education on Economic Growth

2016 ◽  
Author(s):  
Harun Bal ◽  
Erhan İşcan ◽  
Birgül Katar
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Growth And Development ◽  
Creative Thinking ◽  
Entrepreneurship Education ◽  
Physical Capital ◽  
Industrial Society ◽  
Capital Theory ◽  
Economic Growth And Development ◽  
The Impact

Entrepreneurship is one of the prominent individual properties in transition from industrial society to artificial intelligence society. It is extremely important to raise entrepreneurs who can easily adapt to changing circumstances, in a society’s economic growth and development. An entrepreneurship has different qualities in terms of manners and attributes such as leadership, ability to see the opportunities, to pursue the innovations, to take risk, independence, diligence, creative thinking, fast problem solving. It is thought to be the economic growth depended on physical capital increase as well as labor and capital. Education is the most crucial component of human capital. In recent years, the most striking result of endogenous growth model of Romer who contributed the improvement of human capital theory is relatively the economies that have higher sum of human capital rate will have higher economic growth rate. The main aim of this study is to determine the impact of the entrepreneurship education on economic growth and development. For this aim a questionnaire is prepared to analyze the potential impact of the entrepreneurship education on economic growth and development. Results of analyze shown that the entrepreneurship education is necessary and important for entrepreneurship. Therefore, entrepreneurship education and training is sufficient for economic growth. The policy makers should spend more resources on the education that increases the human and social capital.

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