Human Capital Dynamics and Economic Growth: A Panel Data Analysis of Eleven Countries

Abstract

The relationship between human capital and economic growth is a critical concern for policymakers and economists. This study utilizes panel data analysis to investigate this relationship across eleven countries from 1992 to 2016. Panel data analysis offers insights into both cross-sectional and time-series variations, enabling a comprehensive examination of human capital dynamics and economic growth over time. By employing panel data techniques, researchers can control for country-specific characteristics and time trends, yielding more robust estimates. The study focuses on assessing the impact of indicators such as education attainment, health outcomes, and skills development on economic growth. Longitudinal data analysis allows observation of how changes in human capital accumulation correspond to economic performance. Additionally, subgroup analyses enable exploration of heterogeneity in this relationship across countries and regions. Key indicators include Gross Domestic Product (GDP) for economic performance and variables such as investment, net secondary school enrollment, health expenditures, total labor force, and life expectancy at birth for human capital assessment. These indicators offer insights into investment levels, educational attainment, healthcare resources, workforce size, and population health, respectively.