Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM)
This paper aims to evaluate the human capital on economic growth impact in Romania. Variables have been selected according to an endogenous growth model basing on including the human capital in the Cobb-Douglas production function (Lucas, 1988). As all over usual, here gross domestic product (GDP) w...
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| Format: | Article |
| Language: | English |
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Sciendo
2022-07-01
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| Series: | Holistica |
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| Online Access: | https://doi.org/10.2478/hjbpa-2022-0007 |
| _version_ | 1811237911368040448 |
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| author | Andrei Dalina-Maria |
| author_facet | Andrei Dalina-Maria |
| author_sort | Andrei Dalina-Maria |
| collection | DOAJ |
| description | This paper aims to evaluate the human capital on economic growth impact in Romania. Variables have been selected according to an endogenous growth model basing on including the human capital in the Cobb-Douglas production function (Lucas, 1988). As all over usual, here gross domestic product (GDP) will be the endogenous of gross fixed capital formation (GFCF, as physical capital stock), employment (as labour), life expectancy and secondary enrolment rate(as proxies for human capital). We also use expenditure in research and development (R&D) sector (as its percentage in GDP), as control variable. Once our model developed, variables are found as integrated of order one (1) and co-integrated, here allowing a vector error correction model (VECM) for estimation. This will be a system of six equations covering a 25 years (1995-2019) interval for Romania. A long-term relation comes out of our empirical findings, as similarly to Wang (2016), so the GDP growth sees itself determined by: secondary school enrolment, life expectancy(i.e. for human capital), R&D expenditure and labour. Short run causalities have not been found significant for this model |
| first_indexed | 2024-04-12T12:32:39Z |
| format | Article |
| id | doaj.art-043db06fd4d841b6955991af3c81c637 |
| institution | Directory Open Access Journal |
| issn | 2067-9785 |
| language | English |
| last_indexed | 2024-04-12T12:32:39Z |
| publishDate | 2022-07-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Holistica |
| spelling | doaj.art-043db06fd4d841b6955991af3c81c6372022-12-22T03:32:59ZengSciendoHolistica2067-97852022-07-0113111012410.2478/hjbpa-2022-0007Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM)Andrei Dalina-Maria0Institute of Economic Forecasting, Romanian Academy, 13, 13 September street, Bucharest, RomaniaThis paper aims to evaluate the human capital on economic growth impact in Romania. Variables have been selected according to an endogenous growth model basing on including the human capital in the Cobb-Douglas production function (Lucas, 1988). As all over usual, here gross domestic product (GDP) will be the endogenous of gross fixed capital formation (GFCF, as physical capital stock), employment (as labour), life expectancy and secondary enrolment rate(as proxies for human capital). We also use expenditure in research and development (R&D) sector (as its percentage in GDP), as control variable. Once our model developed, variables are found as integrated of order one (1) and co-integrated, here allowing a vector error correction model (VECM) for estimation. This will be a system of six equations covering a 25 years (1995-2019) interval for Romania. A long-term relation comes out of our empirical findings, as similarly to Wang (2016), so the GDP growth sees itself determined by: secondary school enrolment, life expectancy(i.e. for human capital), R&D expenditure and labour. Short run causalities have not been found significant for this modelhttps://doi.org/10.2478/hjbpa-2022-0007human capitaleconomic growthcobb-douglas production functionvector error correction model (vecm) |
| spellingShingle | Andrei Dalina-Maria Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM) Holistica human capital economic growth cobb-douglas production function vector error correction model (vecm) |
| title | Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM) |
| title_full | Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM) |
| title_fullStr | Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM) |
| title_full_unstemmed | Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM) |
| title_short | Human Capital and Economic Growth in Romania: A Vector Error Correction Model (VECM) |
| title_sort | human capital and economic growth in romania a vector error correction model vecm |
| topic | human capital economic growth cobb-douglas production function vector error correction model (vecm) |
| url | https://doi.org/10.2478/hjbpa-2022-0007 |
| work_keys_str_mv | AT andreidalinamaria humancapitalandeconomicgrowthinromaniaavectorerrorcorrectionmodelvecm |