Abstract:
A key underlying factor which boosts rapid Economic Growth is factor productivity and new
world trend moves toward value added manufacturing which relies on human resource. Thus
as productivity drivers Human Development and Human Capital take prime concern in
Development Economics and This paper on Human Capital And Human Development: An
Empirical Analysis, investigates the interrelationship between Accumulations of Human
Capital and Human Development using Simple Regression Analysis by employing Ordinary
Least Square method. And Generalized Least Square Method used to resolve
autocorrelation problem, raised in the data set. This paper uses Human Capital Index to
measure Human Capital accumulation and Human Development Index to measure Human
Development. The data has been extracted from Human Development reports, Published by
United Nations Development Program and Human Capital Report, published by World
Economic Forum. With available data 122 countries are included in the study. This research
concludes that there is a strong positive two way relationship between Human Development
and Human Capital. In case of Advanced Economies, rather than Human Capital, there are
more influential variables which determine the Human Development and vice versa. In case
of Emerging Market and Developing Economies, the regression results show that the
explanatory variable, Human Capital shows a strong relationship with Human Development
and there is no variation among countries with geographical region.
