Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India

Research Article

Empirical Analysis of the effect of Human Capital generation on Economic Growth

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  • @INPROCEEDINGS{10.4108/eai.18-12-2018.2286388,
        author={Sanchari  Debgupta and Rajiv  Divekar and Pravin  Kumar},
        title={Empirical Analysis of the effect of Human Capital generation on Economic Growth },
        proceedings={Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India},
        publisher={EAI},
        proceedings_a={SIMSARC},
        year={2019},
        month={9},
        keywords={human capital; economic growth; panel data econometrics; migration; brain drain},
        doi={10.4108/eai.18-12-2018.2286388}
    }
    
  • Sanchari Debgupta
    Rajiv Divekar
    Pravin Kumar
    Year: 2019
    Empirical Analysis of the effect of Human Capital generation on Economic Growth
    SIMSARC
    EAI
    DOI: 10.4108/eai.18-12-2018.2286388
Sanchari Debgupta1,*, Rajiv Divekar2, Pravin Kumar1
  • 1: Symbiosis Institute of Management Studies, a constituent of Symbiosis International University
  • 2: Director, Symbiosis International (Deemed University), Pune
*Contact email: sanchari.debgupta@sims.edu

Abstract

Last decade of 20th century faced a strong quest for the determinants of the rate of long run economic growth. Post-World War II, human capital emerged as an important and inevitable factor apart from other general factors that affect the rate of growth. Initially, enhancement in general education was encouraged to promote human capital, but presently, advancement in technological progress for skill development has gained special attention for its contribution to the formation of human capital. According to economists and existing theories of growth, a nation that invests in human capital generation should contribute positively in the process of economic growth. Human capital embodies qualities that are inherited as well as acquired through education and training. The returns to investment in human capital not only help individuals to enjoy personal growth but in addition affect the growth of the nation as an aggregate. Human capital enters into the production process through the participation of the labourers. The already existing labour productivity gets improved when subjected to skill improvement through technological knowledge building and on-the-job training. This further leads to a positive impact on the production of goods and services paving way for economic growth. But distribution of human capital has seen its shortcomings as well that has given rise to some of the major issues and challenges for policymakers.