Human Capital Development and Economic Growth in Bangladesh

Md Niaz Murshed Chowdhury; Mohammed Jashim Uddin; Nezum Uddin; Shamim Uddin

doi:doi:10.11648/j.jwer.20180702.12

| Peer-Reviewed

Human Capital Development and Economic Growth in Bangladesh

Md Niaz Murshed Chowdhury, Mohammed Jashim Uddin, Nezum Uddin, Shamim Uddin

Published in Journal of World Economic Research (Volume 7, Issue 2)

Received: 20 January 2018 Accepted: 19 May 2018 Published: 11 June 2018

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study empirically evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, unit root test, Johansson co integration test and ordinary least square (OLS) technique are done. The GDP per capita was used as a proxy for economic growth; Per Capital Gross Domestic Product, primary school enrolment, Secondary school enrollment, tertiary school enrollment, public expenditure on education and health, life expectancy, gross capital formation. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. Life expectancy is found to be most important variable in this model as it has large impact on economic growth in Bangladesh. Recent time tertiary education has significantly affected the economic growth instead of secondary education. Workable policies should be put in place to bring about an overall economic growth. Expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.

Published in	Journal of World Economic Research (Volume 7, Issue 2)
DOI	10.11648/j.jwer.20180702.12
Page(s)	52-63
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Human Capital, GDP, Economic Growth, Ordinary Least Squares, Johansson Co-integration, Unit Root Test

References

[1]	Abosetegn, M. (2000). Employmrnt Market Information and Occupational Guidance for Tertiary Level Students in Ethiopia: The Case of Prospective Agricultural College Graduates.
[2]	Adelakun, O. J. (2011). Human Capital Development and Economic Growth in Nigeria. European Journal of Business and Management, 3(9), 29-38.
[3]	Asghar Reza, S. V. (2012, December). Impact of Education on Economic Growth of Pakistan- Econometric Analysis. Journal of Business and Management, 5(4), 20-27.
[4]	Bills, M. a. (2000). Does schooling cause growth? American Economic Review, 86(2), 1160-1183.
[5]	Chowdhury, M. N., Uddin, M. J., & Islam, M. S. (2014). An Econometric Analysis of the Determinants of Foreign Exchnage Reserve in Bangladesh. Journal of World Economic Research, 3(6), 72-82. doi: 10.11648/j. jwer.20140306.12.
[6]	Development, O. f.-o. (n. d.). Paris: OECD Planning in africa, Addis Abada. UNECA.
[7]	Dhakal T. N, Nawaz F.. (2009). Draft Strategy for Improving Human Capital in Bangladesh and Nepal: Does it help for Women Empowerment. Network of Asia-Pacific Schools and Institutes of Public Administration and Governance (NAPSIPAG) Annual Conference Malaysia.
[8]	Eigbiremolen, G. O. (2014, April). Human Capital Development and Economic Growth: The Nigeria Experience. International Journal of Academic Research in Business and Social Sciences, 4(4), 25-35.
[9]	Faisal Sultan Qadri, A. W. (2011, November). Human Capital and Economic Growth: Time Series Evidence from Pakistan. PAKISTAN BUSINESS REVIEW.
[10]	Galbraith, I. (1996). The new industrial state. Pengium, Harmondsworth.
[11]	Galbrith, J. k. (1967). The new industrial state.
[12]	Garba, P. (2002). Human Capital Formation, Utilization and the Development of Nigeria. Selected paper for the 2002 Annual Conference of the Nigeria Economic Society. Ibadan Polygraphics Ventures Ltd.
[13]	Gazi Mahabubul Alam, M. T. (2009). Return from education system in Bangladesh: An investigation on comparative flashback scenario. African Journal of Business Management, 3(10), 567-575.
[14]	Hanushek, E. A. (2013, April). Economic growth in developing countries: The role of human capital. Economics of Education Review, 37, 204-212.
[15]	Hina Zahra Bokhari, A. A. (2013, September). Impact of Education and Health on Economic Development in Pakistan: A Case Study of Multan City. International Journal of Scientific & Engineering Research, 4(9), 653-659.
[16]	Ifeoma C, E. I. (2013, Nov). Human Capital Development and Economic Growth in Nigeria. Journal of Economics and Sustainable Development, 4(18), 48-53.
[17]	Jones, C. I. (1996, June). Human Capital, Ideas, and Economic Growth. VIII Villa Mondragone International Economic Seminar on Finance.
[18]	Mankiw, N. G. (1992). A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics, 107(2).
[19]	Maria Javed, S. A. (2013). Impact of Human Capital Development on Economic Growth of Pakistan: A Public Expenditure Approach. World Applied Sciences Journal, 24(3), 408-413.
[20]	Maria Javed, S. A. (2013). Impact of Human Capital Development on Economic Growth of Pakistan: A Public Expenditure Approach. World Applied Sciences Journal, 24(3), 408-413.
[21]	Md. Mahi Uddin, M. N. (2015, June). Effect of Public Investment on Economic Growth in Bangladesh: An Economietirc Analysis. International Journal of Developing and Emerging Economies, 3(2), 72-97.
[22]	MOHSIN, K. S. (2005). Human Capital and Economic Growth in Pakistan. The Pakistan Development Review, 44(4), 455-478.
[23]	Nabila Asghar, A. A. (2012). Human Capital and Economic Growth in Pakistan: A Cointegration and Causality Analysis. International Journal of Economics and Finance, 4(4), 135-147.
[24]	Ojo Oladeji, O. T. (1995). Determinats of Long-Term growth: Some African Results. Journal of African Economics, 4(2).
[25]	Olaniyan, D. &. (2008). Human Capital Theory: Implication for Economic Development. Pakistan Journal of Social Science, 5(5), 479-483.
[26]	Poças, A. (2014). HUMAN CAPITAL DIMENSIONS – EDUCATION AND HEALTH – AND ECONOMIC GROWTH. Advances in Business-Related Scientific Research Journal, 5(2), 111-120.
[27]	Qaisar Abbasa, J. F.-P. (2007, July). Human Capital and Economic Growth: Pakistan, 1960-2003. NRPU projects by Higher Education Commission (HEC) of Pakistan. NRPU projects by Higher Education Commission (HEC) of Pakistan.
[28]	RANIS, G. (2000). Economic Growth and Human Development. World Development, 28(2), 197-219.
[29]	RAUL RAMOS, J. S. (2012, November). Regional Economic Growth and Human Capital: The Role of Over-education. Regional Studies,, 46(10), 1389-1400.
[30]	Risikat, D. (n. d.). Role of Human Capital in Economic Development: An Empirical Study of Nigeria Case. rdaduda@unilag.edu.ng.
[31]	Rob A. Wilson, G. B. (2004). The impact of human capital on economic growth: a review. Office for Official Publications of the European Communities.
[32]	Sajid Ali, I. S. (2012). Human Capital Formation and Economic Growth in Pakistan. Pakistan Journal of Social Sciences, 32(1), 229-240.
[33]	Schultz, T. W. (1993). The Economic Importance of Human Capital in Modernization. Education Economics, 1(1), 13-19.
[34]	Taimur Sharif, J. A. (2013). Human Resource Development and Economic Growth in Bangladesh: An Econometric Analysis. European Journal of Business and Management, 5(7), 133-144.
[35]	U. A. (2009). HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA. International Journal of Development Studies, 4(3), 80-85.
[36]	Uddin, M. M., Chowdhury, M. N., & Uddin, S. (2015, June). Effect of public investment on Economic Growth in Bangldesh: An Econometric Analysis. International Journal of Developing and Emerging Economies, 3(2), 72-97.
[37]	Uddin, M., Chowdhuy, N. M., & Ahmed, M. (2015, 2). Impact of ADP on GDP in Bangladesh: A Cointegration Approach. International Journal of Econometrics and Financial Management, 3(2), 44-56. doi:10. 12691/ijefm-3-2-1
[38]	Wakeel A Isola, A. R. (2007). HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM NIGERIA. Asian Economic and Financial Review, 2(7), 813-827.
[39]	Yeasmin, F., & Chowdhury, M. N. (2014). Impact of foreign debt on economic growth in Bangladesh: An Econometric Analysis. International Journal of Developing and Emerging Economics, 2(4), 1-23.

Cite This Article

Plain Text BibTeX RIS

APA Style

Md Niaz Murshed Chowdhury, Mohammed Jashim Uddin, Nezum Uddin, Shamim Uddin. (2018). Human Capital Development and Economic Growth in Bangladesh. Journal of World Economic Research, 7(2), 52-63. https://doi.org/10.11648/j.jwer.20180702.12

Copy | Download

ACS Style

Md Niaz Murshed Chowdhury; Mohammed Jashim Uddin; Nezum Uddin; Shamim Uddin. Human Capital Development and Economic Growth in Bangladesh. J. World Econ. Res. 2018, 7(2), 52-63. doi: 10.11648/j.jwer.20180702.12

Copy | Download

AMA Style

Md Niaz Murshed Chowdhury, Mohammed Jashim Uddin, Nezum Uddin, Shamim Uddin. Human Capital Development and Economic Growth in Bangladesh. J World Econ Res. 2018;7(2):52-63. doi: 10.11648/j.jwer.20180702.12

Copy | Download

@article{10.11648/j.jwer.20180702.12,
  author = {Md Niaz Murshed Chowdhury and Mohammed Jashim Uddin and Nezum Uddin and Shamim Uddin},
  title = {Human Capital Development and Economic Growth in Bangladesh},
  journal = {Journal of World Economic Research},
  volume = {7},
  number = {2},
  pages = {52-63},
  doi = {10.11648/j.jwer.20180702.12},
  url = {https://doi.org/10.11648/j.jwer.20180702.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20180702.12},
  abstract = {Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study empirically evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, unit root test, Johansson co integration test and ordinary least square (OLS) technique are done. The GDP per capita was used as a proxy for economic growth; Per Capital Gross Domestic Product, primary school enrolment, Secondary school enrollment, tertiary school enrollment, public expenditure on education and health, life expectancy, gross capital formation. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. Life expectancy is found to be most important variable in this model as it has large impact on economic growth in Bangladesh. Recent time tertiary education has significantly affected the economic growth instead of secondary education. Workable policies should be put in place to bring about an overall economic growth. Expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Human Capital Development and Economic Growth in Bangladesh
AU  - Md Niaz Murshed Chowdhury
AU  - Mohammed Jashim Uddin
AU  - Nezum Uddin
AU  - Shamim Uddin
Y1  - 2018/06/11
PY  - 2018
N1  - https://doi.org/10.11648/j.jwer.20180702.12
DO  - 10.11648/j.jwer.20180702.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 52
EP  - 63
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20180702.12
AB  - Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study empirically evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, unit root test, Johansson co integration test and ordinary least square (OLS) technique are done. The GDP per capita was used as a proxy for economic growth; Per Capital Gross Domestic Product, primary school enrolment, Secondary school enrollment, tertiary school enrollment, public expenditure on education and health, life expectancy, gross capital formation. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. Life expectancy is found to be most important variable in this model as it has large impact on economic growth in Bangladesh. Recent time tertiary education has significantly affected the economic growth instead of secondary education. Workable policies should be put in place to bring about an overall economic growth. Expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.
VL  - 7
IS  - 2
ER  -

Copy | Download

Author Information

Md Niaz Murshed Chowdhury

Department of Economics, University of Nevada, Reno, USA
Mohammed Jashim Uddin

Department of Economics and Banking, International Islamic University Chittagong, Chittagong, Bangladesh
Nezum Uddin

Department of Economics and Banking, International Islamic University Chittagong, Chittagong, Bangladesh
Shamim Uddin

Economic Research, the Central Bank of Bangladesh, Dhaka, Bangladesh

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Md Niaz Murshed Chowdhury, Mohammed Jashim Uddin, Nezum Uddin, Shamim Uddin. (2018). Human Capital Development and Economic Growth in Bangladesh. Journal of World Economic Research, 7(2), 52-63. https://doi.org/10.11648/j.jwer.20180702.12

Copy | Download

ACS Style

Md Niaz Murshed Chowdhury; Mohammed Jashim Uddin; Nezum Uddin; Shamim Uddin. Human Capital Development and Economic Growth in Bangladesh. J. World Econ. Res. 2018, 7(2), 52-63. doi: 10.11648/j.jwer.20180702.12

Copy | Download

AMA Style

Md Niaz Murshed Chowdhury, Mohammed Jashim Uddin, Nezum Uddin, Shamim Uddin. Human Capital Development and Economic Growth in Bangladesh. J World Econ Res. 2018;7(2):52-63. doi: 10.11648/j.jwer.20180702.12

Copy | Download

@article{10.11648/j.jwer.20180702.12,
  author = {Md Niaz Murshed Chowdhury and Mohammed Jashim Uddin and Nezum Uddin and Shamim Uddin},
  title = {Human Capital Development and Economic Growth in Bangladesh},
  journal = {Journal of World Economic Research},
  volume = {7},
  number = {2},
  pages = {52-63},
  doi = {10.11648/j.jwer.20180702.12},
  url = {https://doi.org/10.11648/j.jwer.20180702.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20180702.12},
  abstract = {Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study empirically evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, unit root test, Johansson co integration test and ordinary least square (OLS) technique are done. The GDP per capita was used as a proxy for economic growth; Per Capital Gross Domestic Product, primary school enrolment, Secondary school enrollment, tertiary school enrollment, public expenditure on education and health, life expectancy, gross capital formation. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. Life expectancy is found to be most important variable in this model as it has large impact on economic growth in Bangladesh. Recent time tertiary education has significantly affected the economic growth instead of secondary education. Workable policies should be put in place to bring about an overall economic growth. Expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Human Capital Development and Economic Growth in Bangladesh
AU  - Md Niaz Murshed Chowdhury
AU  - Mohammed Jashim Uddin
AU  - Nezum Uddin
AU  - Shamim Uddin
Y1  - 2018/06/11
PY  - 2018
N1  - https://doi.org/10.11648/j.jwer.20180702.12
DO  - 10.11648/j.jwer.20180702.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 52
EP  - 63
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20180702.12
AB  - Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study empirically evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, unit root test, Johansson co integration test and ordinary least square (OLS) technique are done. The GDP per capita was used as a proxy for economic growth; Per Capital Gross Domestic Product, primary school enrolment, Secondary school enrollment, tertiary school enrollment, public expenditure on education and health, life expectancy, gross capital formation. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. Life expectancy is found to be most important variable in this model as it has large impact on economic growth in Bangladesh. Recent time tertiary education has significantly affected the economic growth instead of secondary education. Workable policies should be put in place to bring about an overall economic growth. Expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.
VL  - 7
IS  - 2
ER  -

Copy | Download