• The Journal of Asian Finance, Economics and Business
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• 제8권7호
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• pp.43-54
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• 2021

Human capital and innovation capacities are essential elements and one of the sustainable approaches to driving economic growth. However, there is debate among scholars concerning these two factors in fostering economic growth. This study investigates the relationships between human capital and innovation capacity and economic growth in selected ASEAN countries, namely, Malaysia, Thailand, and Indonesia. Economists widely discussed the interrelation of human capital and innovation. A large body of literature stated that human capital is an essential factor and engine of economic growth. Innovation has become key in transforming the economic development of developing countries. We analyze human capital (HC) and innovation capacity (INC) using static panel data analysis. The data analysis shows that the fixed-effect model is the best model in this study. Further, human capital (HC) has a significant positive relationship with economic growth. Meanwhile, innovation capacity has no significant relationship with economic growth. We also found that Malaysia's coefficient of human capital and innovation capacity is higher and more efficient than in Thailand and Indonesia. In conclusion, human capital and innovation capacity are crucial elements for measuring economic growth. Skilled human capital contributes significantly to the economic growth and economic development of a nation.

• The Journal of Asian Finance, Economics and Business
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• 제6권1호
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• pp.321-328
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• 2019

The purpose of the study is to analyze the main approaches to assessing human capital and develop proposals for its most objective assessment of it at the different levels of manifestation - individual, microeconomic and macroeconomic. The article considers the basic approaches to the evaluation of human capital, used in practice: retrospective (costly) and prospective (income based). Cost based methods involve measuring the value of human capital based on the total costs associated with its formation. The proposed additional evaluation criteria, in particular, the use of the expert approach and the developed indicators of a qualitative assessment of the human capital of the enterprise will allow development that is more efficient and use of available human resources. Human capital is becoming a major factor in the formation and development of an innovative economy and knowledge economy. Accordingly, the proposed additions to the assessment of human capital at the country level are aimed at assessing it from a new angle, taking into account the current global trends in the formation of an innovative economy and digitalization. They meet qualitatively new requirements for human capital as the main productive factor in the creation of new highly efficient technologies that promote the active development of the social sphere, science, education, health, etc.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.29-35
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• 2021

This study discusses the effect of human capital and technology on economic growth in Indonesia using annual time series data over the 35-year research period (1984-2019). This study uses an autoregressive distribution gap to the cointegration approach to understanding the relationship between human capital, technology, and economic growth. Human capital is inherent in humans and becomes capital in providing the best performance that has an impact on their own income. We use the human capital framework in this study where education is one mechanism to increase human capital. Based on the results of our estimation, we find that the increase in human capital using the education mechanism affects economic growth. This shows the role of human capital investment is very important in economic growth. Technology shows a significant positive effect on economic growth. Increasing human resources and technology are important factors in efforts to increase economic growth in Indonesia. Educational development is the key to the success of increasing human capital and technological development because education plays a role in improving the quality of human resources. Increasing human resources here is in the form of increased knowledge, mastery of technology, innovation, and the ability to develop technology to encourage technology development.

• KDI Journal of Economic Policy
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• 제37권2호
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• pp.22-39
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• 2015

After a long, dormant period, recent attention has turned to a variety of measurement issues surrounding the concept of human capital. The traditional approach of rely entirely on measures of school attainment, while convenient, is almost certainly misleading. The availability of cognitive skills measures greatly improves on these measurements, but there remains also concern about other unmeasured factors, including noncognitive skills. This paper considers alternative approaches to assessing the role of human capital on individual earnings and on economic growth.

• Asian Journal of Business Environment
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• 제7권3호
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• pp.23-31
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• 2017

Purpose - The purpose of this paper is to rationale the new approach to analysis of the human capital as a factor of effective development of a national economy and increase the level of country's competitiveness. Research design, data, and methodology - This research aims the furthest development of the conception in human capital formation. The study made on the base of the methods with scientific classification and systematization, that is, comparative, statistical analysis, economic-mathematic method, and expert assessment and ratings. Results - This research attempted to measure the correlation between the human capital elements and the level of country's competitiveness. The study revealed that formation of the competitive human capital cannot be considered in separation from the development and modernization of education system, the improvement of employment sphere, and the creation of effective interaction between them through the system of professional skills. Conclusions - The competitive human capital formation is one of the most important goals in the innovative economy construction and modern development, and it is also indispensable subject. Especially in the condition of economic crises, the necessity of formation and development of the effective human capital is considerably increasing. Realization of this task requires the development and stimulation of all the factors influencing the growing human potential.

• The Journal of Asian Finance, Economics and Business
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• 제7권10호
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• pp.571-579
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• 2020

This paper examines how human capital and other economic variables, such as private investment, economic growth, government investment, inflation, and unemployment influence inequality in Indonesia's provinces. We apply panel data model with fixed effect estimation for the data of 34 provinces from the period 2013 to 2019. We develop a new index for human capital using the education index approach. The results show that human capital has a negative and significant effect on income inequality. An increase in human capital is related to an increase in knowledge and competence due to the longer average school year and expectations of the school year. Human capital has increased the possibility of a person being accepted into the job market and earning a higher income; hence, it lowers income inequality. We also find that inflation leads to a higher gap of income distribution. A further implication of this situation is that the rise in inflation causes an increase in low-income people, and as a consequence, makes their lives worse off. This paper will be beneficial for policy-makers for whom human capital, which is measured using an education index, is an important factor that significantly affects income inequality, in addition to other economic factors.

• 아태비즈니스연구
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• 제11권3호
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• pp.47-61
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• 2020

Purpose - This study investigates the relationship between firm-specific, general human capital and corporate innovation performance. Also, we examine when this relationship is more salient. Design/methodology/approach - We collected 1,195 survey data related to a sample of corporate innovation performance and human capital from 1) Korea Research for Vocational Education and Training and 2) NICE information service in Korea. In order to examine the corporate innovation performance, we use the ordered logit model. Findings - First, we find robust supports for our hypothesis that firm-specific and general human capital increase corporate innovation performance. Second, the effect of general human capital on corporate innovation performance is stronger when this relationship is combined with the firm international experience. Research implications or Originality - By integrating the human capital theory and corporate innovation literature, we propose that firm-specific and general human capital are the important determinant of innovation performance. The firm-specific human capital may increase innovation efficiencies. Also, retaining higher-quality general human capital is considered as an important innovation strategy since firms with higher-quality general human capital make greater innovation performance. Further, we show that the firm international experience is the crucial boundary condition. As a firm's experience in internationalization increases, firms can enhance the opportunities to develop new products by combining the skills and knowledge derived from general human capital with the experience gained through internationalization.

• 아태비즈니스연구
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• 제12권4호
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• pp.87-105
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• 2021

Purpose - The purpose of this study was to explores how CEO general human capital, one of the most critical issues in recent research, affects compensation schemes. Design/methodology/approach - This study collected the CEOs of S&P500 companies from 2001 to 2009 and contains 4,155 CEO-firm-year observations and 704 different CEOs. Findings - First, only contingent bonus is affected by general human capital and reputation. Second, the career concerns of CEOs are relevant, especially when explaining CEO tenure. Third, we offer an alternative view of what determines the level of cash compensation schemes and the factors that affect the running of a firm. Fourth, we also suggest that the increase in general human capital can be explained by the increase in its relative importance in managing a modern firm. Overall, the results of this study do not only contribute to academics but also important to boards and shareholders. Research implications or Originality - This study intends to fill the gap in the extant literature by examining the relationship between general human capital and compensation schemes.First, we add to the compensation literature by arguing that a cash compensation scheme is efficient for generalist CEOs. We break down CEO cash compensation schemes into fixed and contingent bonus compensation and investigate whether general human capital differentially affects CEO cash compensation schemes, and thus, the sensitivity to unequal pay for human capital. Second, we contribute to the reputation literature by arguing that CEO perceived reputation also affects CEO compensation schemes.

• 지역연구
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• 제33권2호
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• pp.3-23
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• 2017

본 연구는 수도권과 비수도권 근로자의 임금격차와 인적자본 수준 사이의 관계를 분석하는 것을 목적으로 한다. 보다 구체적으로 수도권 근로자가 비수도권 근로자보다 더 높은 수준의 임금을 받는 이유가 수도권 근로자의 인적자본 수준이 비수도권 근로자의 인적자본 수준보다 더 높기 때문인지 아니면 동일한 인적자본 수준을 가졌음에도 불구하고 수도권 근로자에게 더 높은 보상이 제공되기 때문인지에 대해 살펴보는 것이다. 본 연구는 무조건 분위회귀 분해법을 이용하여 수도권과 비수도권 근로자의 임금격차와 인적자본 사이의 관계가 임금 분위에 따라 상이하게 나타는지를 확인하고자 하였다. 또한 전통적인 인적자본 지표인 교육년수 및 직무훈련과 함께 인지 및 상호적 숙련, 기술적 숙련, 육체적 숙련 등 직종 숙련 수준을 고려하였다. 분석 결과에 따르면, 성별, 정규직 여부, 기업 규모 등의 변수들이 통제된 상태에서 수도권과 비수도권 근로자의 임금격차의 상당 부분이 인적자본 변수들에 의해 설명되는 것으로 나타났다. 인적자본의 질적인 차이로 인한 임금격차를 의미하는 인적자본의 구성 효과가 모든 임금 분위에서 존재하는 것으로 나타났지만, 수도권과 비수도권 근로자의 임금격차 문제에서 보다 중요하게 작용하는 요인은 인적자본의 임금구조 효과인 것으로 나타났다. 직종 숙련을 포함한 다양한 인적자본 변수들 중에서도 특히 교육년수의 임금구조 효과가 수도권과 비수도권 근로자의 임금격차를 설명하는 데에 있어 핵심적인 요인인 것으로 나타났다. 본 연구는 중위임금 또는 평균임금 수준에 초점을 두고 있는 전통적인 분석방법에서 벗어나 수도권과 비수도권 근로자 사이의 임금격차가 임금 분위에 따라 상이한 양상을 나타낼 수 있음을 무조건 분위회귀 분해를 통하여 밝혔다는 점에서 연구의 의의가 있다.

• The Journal of Asian Finance, Economics and Business
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• 제8권1호
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• pp.257-269
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• 2021

Intellectual capital is becoming a crucial factor for a firm's long-term profit and performance in the knowledge-based economy as more firms identify their core competence as invisible assets rather than visible assets (Itami, 1987). The company was encouraged to measure financial and non-financial factors, including the customer perspective groups, the internal business process, learning and growth perspective, then to link all these measurements in a coherent system. This paper seeks to investigate the influence of intellectual capital elements on company performance, as well as the relationship among intellectual capital elements from a cause-effect perspective. Resource-Based View (RBV) considers intellectual capital as resource and capability to sustain competitive advantage on company performance. The partial least squares approach is used to examine listed banks in Indonesia Stock Exchange for year 2017-2019. Results show that human capital directly has positive influences on innovation capital, customer capital, and process capital. Innovation capital has positive, but less significant influence on process capital, which in turn influences customer capital. Human capital and process capital also influence customer capital. Finally, customer capital contributes to performance. This study helps management to identify relevant intellectual capital elements as competitive advantage and their indicators to enhance business performance.