• Journal of Distribution Science
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• v.18 no.9
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• pp.13-18
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• 2020

Purpose: Research and development of human capital in countries bring sustainable development to the nations. Especially for developing countries, the attraction of foreign direct investment not only brings economic growth to the country but also contributes to improving human capital. This study aims to assess the impact of foreign direct investment on human capital in ASEAN countries. Research design, data and methodology: With data collected from ASEAN countries from 1990 to 2019, panel data analysis is performed with revised model types (the Pooled OLS, Fixed effect model, Random effect model and regression with Driscoll-Kraay standard errors). Result: The results of the regression analysis show that FDI has a positive impact on human capital. At the same time, the study also found that public investment in education also positively affects human capital; the life expectancy factor does not affect human capital. Conclusions: With this research result, the authors also proposed a number of solutions to improve human capital by attracting FDI and improving the efficiency of investment for the education of ASEAN countries. Besides, public expenditure on education also plays an important role in raising human capital. Therefore, investment in education should be promoted further in the future.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.1 no.1
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• pp.11-26
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• 1978

Economic development is usually identified with the increased of G.N.P and capital formation connected directly wi:11 the net increase of land, structure, commodity, stocks and foreign claims, etc. The increase of G.N.P. is driving at capital formation. The usual concept of capital formation for economic development misses the important productivity factor of human capital. Because it is now increasingly realized that a massive injection of material into production will 11 not necessarily explain a successful productivity unless that country already possesses 1 suitable human capital. Human capital is built of educational investment which is related to the physical capital. Many statistical investigations identified this reality. Of late years, a great crowd of economists studying an the problem of economic development have turned their attention towards human capital. Thereupon, this paper has dealt with the fact that educational investment affects physical capital and employment. The qualitative increment of human capital will increase the productivity but excessive expenditure on human capital will squander a physical capital. In designing a strategy of human capital for economic development, one needs to consider tile level of educational investment because educational investment of developing countries will be accasionaly made or marred by investment level and direction.

• Journal of the Korean Home Economics Association
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• v.41 no.5
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• pp.221-232
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• 2003

This study examined the investment in human capital of Korean urban households. Data for this study were from the 2001 Household Income and Expenditure Survey and consisted of a sample of 2,681 households. The results of Gini's concentration coefficient showed high inequality of investment in human capital. To investigate which factors influence investments in human capital, various socio-demographic variables were analysed. High investment in human capital is shown in high society indicating that they transmit the advantage of education to their descendants. The results of this study is useful for welfare professionals who work in family well-being.

• Korea journal of population studies
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• v.14 no.1
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• pp.1-25
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• 1991

The Purpose of this study is to analyze the contribution of the total human capital formation to economic growth in Korea. In order to assess the contribution of the total human capital formation to economic growth, aggregate production functions are estimated using two ways of ordinary least squares and polynomial distributed lags based on 1955 - 1988 time series data in Korea. The total amount of investment in human capital is calculated by adding each amount of investment in formal education, vocational training, inter-provincial migration, and health in pecuniary terms. The findings of this study could be summarized as follows ; (1) If we enumerate the variables in good order according to the importance, we get the following ; namely, total number of labor force, inter-provincial migration, vocational training, health, physical capital, and formal education. (2) The contribution of the human capital to economic growth is much more larger than that of physical capital. In particular, it appears that inter-provincial migration and vocational training make a great contribution to economic growth. (3) It appears that investment in formal education has a continuous effect for fifteen years and maximum effect is observed approximately eight years later. In the case of vocational training, the effect of investment lasts for about 12-14 years and its effect on economic growth reaches maximum with the passage of seven to eight years after initial investment. (4) Investment in vocational training contributes more in the long run compared with investment in formal education. The effect of investment in formal education lasts longer than that of vocational training, while the effect of investment in vocational training is considerably larger in the short run compared with the investment in formal education.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.123-130
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• 2019

The paper aims to investigate whether foreign direct investment (FDI) has positive effect on the labour productivity in Vietnam. Labour productivity is the elemental determinant of a country's development level in long-term. In recent years, although increasing consistently, labour productivity of Vietnam remains low in comparison to other South East Asian countries. To identify the direction of effect and the level of effect of FDI and human capital on the labour productivity of Vietnam, Autoregressive Distributed Lag (ARDL) model was used to examine the effect of FDI and human capital on labour productivity in Vietnam from 1986 to 2014. The results of bounds test confirm the existence of cointegration among the variables. Further, the Toda and Yamamoto Granger causality test affirms that there is unidirectional causality running from foreign direct investment and human capital index to labour productivity. The empirical results provide strong statistical evidence that foreign direct investment and human capital has a positive impact on labour productivity in Vietnam in long-term. These findings imply that workers are expected to further improve their knowledge, skills and that policy-maker should establish concrete plans to increase human capital. Results from this study provide suggestion necessary for Vietnam to achieve sustainable development.

• Journal of Family Resource Management and Policy Review
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• v.12 no.2
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• pp.31-55
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• 2008

Human capital theory and social capital theory provide a framework for analyzing economic well-being. The purpose of this study was to investigate the effects of human capital and social capital on the economic well-being of the elderly. The data from the 1st wave of KLoSA (Korean Longitudinal Study of Aging) were used (n=3,426). The major findings were as follows: First, human capital and social capital are both resources that can contribute to increasing the economic well-being of the elderly. Second, the effects of human capital on the economic well-being of the elderly were relatively higher than the effects of social capital. Third, the relative contributions of human capital and social capital to increasing economic well-being varied by sex, age, and region. Based on the empirical results, the implications for social investment in human capital and social capital were provided.

• International Area Studies Review
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• v.21 no.1
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• pp.201-219
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• 2017

This paper analyzes the economic effects of the S&T Innovation, R&D, human resources and investment on the economic growth using 18 countries. We have obtained the somewhat mixed results on the existence of unit root roots in variables. While most of Pedroni cointegration tests show that there are no panel cointegration among the variables, Kao cointegration test shows that there is the panel cointegration among the variables such as GDP, human capital, R&D investment and patent. Kao cointegration test result shows that human capital, R&D investment, patent economic growth seem to have the panel cointegration or the long-run relationship among them as a whole. The estimation results of individual OLS and panel estimation show that the human capital, R&D investment and technology innovation or patent had positively significant effects on economic growth or GDP.

• Journal of Families and Better Life
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• v.26 no.5
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• pp.315-332
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• 2008

The purpose of this study was to investigate the relative effects of human capital and social capital on the economic well-being of late middle-aged Koreans. The data from the first wave of KLoSA (Korean Longitudinal Study of Aging) aged 50-64 were used (n=4,040). The major findings were as follows: First, human capital and social capital are both resources that can contribute to increasing the economic well-being of the middle-aged. Second, the relative contribution of human capital to the economic well-being of the middle-aged varied by the level of social capital, including formal network and informal network. Third, the relative contribution of social capital to the economic well-being of the middle-aged varied by the level of human capital, including employment type and educational attainment. Based on empirical results, the implications for social investment in human capital and social capital were provided.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.33-42
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• 2021

This study aims to investigate the relationship between foreign direct investment (FDI) and economic growth at the provincial level by using time-series data in Binh Dinh from 1997 to 2019. We applied the quantitative approaches Vector Autoregression (VAR) and Autoregressive Distributed Lags (ARDL) in the model, which includes economic growth, real foreign direct investment capital, ratio of trained workers, and infrastructure. The results show that all these variables are stationary at the first difference. In ARDL analysis, we found that the economic growth positively affects FDI attraction. However, there is no evidence of the effect of FDI on economic growth in the condition of low capital implemented. Moreover, findings also show that the impact of FDI on economic growth is influenced by two factors: infrastructure and human capital. The lack of human capital, which is trained personnel and infrastructure, is the main barrier hindering and inhibiting FDI's contribution to local economic growth. In order to improve the efficiency of FDI on economic growth in the future, it is suggested that the Binh Dinh government should have proper policies in terms of the infrastructure, the human capital investment. They would allow Binh Dinh to enhance the capital absorptive capacity and capital efficiency.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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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.