The main purpose of this study is to test the effect of human and physical capital on GDP. The study aims to realize this by means of using gross fixed capital formation as physical capital indicator and education expenditures, life expectancy at birth as human capital indicators by analyzing the data of the 16 developing countries Methodology -This study aims to determine the long-run impact of physical and human capital on GDP by using the panel data set of 16 developing countries over the period 1990-2018. In the established model, growth (GDP) is the dependent variable, Human Development Index (HDI), Inflation (INF), Government Capital, ODA proxied as official development assistant, Investment (INV) proxied as foreign direct investment and Labour (LAB) as independent and control variables are included. Random and Fixed effects estimation techniques are employed to analyse and assess the significance relationship between economic growth and human development index. Findings-According to test results, human development supports economic growth. It can be noticed that inflation is significant and have a negative relationship with economic growth and development for our sample and period. It can be recorded that Labour (LAB) has a significant and is positively related to economic growth. Goverment capital (GC) is seen to be positively related to growth (GDP) and also significant.
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Tuba Gulcemal (2020) studied this question.
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