Human Capital Development and Economic Growth in Bangladesh
Journal of World Economic Research
Volume 7, Issue 2, June 2018, Pages: 52-63
Received: Jan. 20, 2018; Accepted: May 19, 2018; Published: Jun. 11, 2018
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Authors
Md Niaz Murshed Chowdhury, Department of Economics, University of Nevada, Reno, USA
Mohammed Jashim Uddin, Department of Economics and Banking, International Islamic University Chittagong, Chittagong, Bangladesh
Nezum Uddin, Department of Economics and Banking, International Islamic University Chittagong, Chittagong, Bangladesh
Shamim Uddin, Economic Research, the Central Bank of Bangladesh, Dhaka, Bangladesh
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Abstract
Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study empirically evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, unit root test, Johansson co integration test and ordinary least square (OLS) technique are done. The GDP per capita was used as a proxy for economic growth; Per Capital Gross Domestic Product, primary school enrolment, Secondary school enrollment, tertiary school enrollment, public expenditure on education and health, life expectancy, gross capital formation. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. Life expectancy is found to be most important variable in this model as it has large impact on economic growth in Bangladesh. Recent time tertiary education has significantly affected the economic growth instead of secondary education. Workable policies should be put in place to bring about an overall economic growth. Expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.
Keywords
Human Capital, GDP, Economic Growth, Ordinary Least Squares, Johansson Co-integration, Unit Root Test
To cite this article
Md Niaz Murshed Chowdhury, Mohammed Jashim Uddin, Nezum Uddin, Shamim Uddin, Human Capital Development and Economic Growth in Bangladesh, Journal of World Economic Research. Vol. 7, No. 2, 2018, pp. 52-63. doi: 10.11648/j.jwer.20180702.12
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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