Ugur Filiz- Szent Istvan University, Gödöllő, Páter Károly u. 1, 2100, Hungary
5th International Conference – ERAZ 2019 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, Budapest – Hungary, May 23, 2019, CONFERENCE PROCEEDINGS
Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia;
ISBN 978-86-80194-20-2, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.2019
Even though the emergence of the human capital theory was shaped in the context of microeconomics,
it was applied to macroeconomics eventually by the implementation of the microeconomic
production function at the national or economy-wide level. There are several economic growth models
introduced in the literature on this matter over the years by placing aggregate production function
in the center of their models, which lay the foundation of studies focusing on economic development.
However, development of ‘new growth theory’ particularly draw attention to the relationship between
human capital and growth that is followed by the efforts aiming to bring an explanation to the differences
of growth across countries by considering several possible variables of growth.
New growth theory attempted to bring an explanation to the process of economic growth in the long term
through endogenous forces such as human capital, knowledge and information technology which also
constituted the foundation of today’s modern economies. Economic growth has been linked to an increase
in knowledge, quality, and diversity of human capital rather than just a cumulative increase in the labor
force. Consequently, human capital has been recognized as one of the significant factors in the process
of economic growth in the literature, considering its positive contribution to creating more output in
growth. However, it is noteworthy to state that literature on this topic seems to constitute some weaknesses
methodologically and conceptually as well as empirical researches due to revealing reverse results.
In this context, this paper aims to conduct a literature review to develop an understanding of the human
capital concept and its importance in economic growth. Accordingly, the concepts of human capital
and economic growth are analyzed theoretically by showing findings of some research in the literature
on the relationship between both variables which indicated that human capital could have a significant
positive impact on economic growth. As of theoretical character of the study, the paper is based on the
systematic review of the literature on theories of economic growth by making use of secondary data like
journals, papers, websites and various magazines as the primary sources to bring an explanation to the
correlation between both variables.
Human capital, economic growth, human resources.
 Mincer, J. (1962). Labor Force Participation of Married Women: A Study of Labor Supply,
Princeton University Press, pp. 63-105.
 Schultz, T. W. (1961). Investment in Human Capital, The American Economic Review, 51,
 Becker, G.S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political
Economy, 70(Supplement), pp. 9-49.
 Mankiw, N.G., Romer, D., & Weil, D.N. (1992). A Contribution to the Empirics of Economic
Growth. Quarterly Journal of Economics, 107, pp. 407-437.
 Becker, G.S. (1964). Human Capital: A Theoretical and Empirical Analysis with Special
Reference to Education, University of Chicago Press.
 Mincer, J. (1974). Schooling, Experience and Earnings, Columbia University Press.
 Lucas, R. (1990). Why Does not Capital Flow from Rich to Poor Countries, American
Economic Review, Volume 80, No 1, pp. 6-92.
 Weisbrod, Burton A. (1961). The Valuation of Human Capital, The Journal of Political
Economy, Volume 69, pp. 425-436.
 Weisbrod, Burton. A. (1966). Investing in Human Capital, T he Journal of Human Resources,
Volume 1, pp. 5-21.
 Becker, G.S. (1975). Human Capital, 2nd Edition, University of Chicago Press.
 OECD (1998). OECD Insights: Human Capital, The Value of People, pp. 29.
 Lynch, L. M. (1991), The role of off-the-job versus on-the-job training for the mobility of
women workers, American Economic Review, Papers and Proceedings, Vol. 81, pp. 151–6.
 Legge, K. (2005), Human Resources Management: Rhetoric and Realities, Palgrave,
 Haller, Alina-Petronela (2012). Concepts of Economic Growth and Development Challenges
of Crisis and Knowledge, Economic Transdisciplinary Cognition, Vol.15, Issue 1,
 Kuznets, S. (1955). Toward a Theory of Economic Growth, National Policy for Economic
Welfare at Home and Abroad, pp. 16.
 Kuznets, S. (1949). Suggestions for an Inquiry into the Economic Growth of Nations,
Problems in the Study of Economic Growth, pp. 6.
 Arthur, A. J. (1964). The Meaning and Measurement of Economic Growth, Supplement to
the Treasury Information Bulletin, Commonwealth of Australia, November.
 Lucas, R.E. (1988), On the Mechanics of Economic Development, Journal of Monetary
Economics, Vol. 22, 1, pp. 3-42.
 Temple, Jonathan (1999). The New Growth Evidence, Journal of Economic Literature, Vol.
37, 1, pp. 112-156.
 Romer, Paul, 1986. Increasing Returns and Long-run Growth, Journal of Political Economy,
94(5), pp. 1002-1037.
 North, D., and Thomas R.P., 1973. The Rise of the Western World: A New Economic History,
Cambridge: Cambridge University Press.
 Acemoglu, D., Johnson S., and Robinson J.A., (2005). Institutions as a Fundamental Cause
of Long-term Growth in Handbook of Economic Growth, Philippe Aghion and S. Durlouf,
Eds., Volume 1A, Chapter 6, pp. 386-414.
 Freire-Seren, M. J. (2001). Human Capital Accumulation and Economic Growth, Investigaciones
Economics, 3, pp. 585-602.
 Barro, R. J. (1991). Economic Growth in a Cross Section of Countries. Quarterly Journal
of Economics, 106(425), pp. 407–43.
 Barro, R., & Sala-i-Martin, X. (1995). Economic Growth. McGraw-Hill, New York, pp.
 Dale W. Jorgenson, Mun S. Ho, and Kevin J. Stiroh. 2003. Lessons from the U.S. Growth
Resurgence, Journal of Policy Modeling, 25, 5, pp. 453-470.
 Romer, Paul M. (1990). Endogenous Technological Change, Journal of Political Economy,
Vol. 98, 5, pp. S71-S102.
 Musibau, B. A., & Rasak, A. A. (2005). Long Run Relationship Between Education and
Economic Growth in Nigeria: Evidence from Johansen’s Cointegration Approach. Cornel
University, Dakar – Senegal.
 Zhang, C., and Zhuang, L. (2011). The Composition of Human Capital and Economic
Growth: Evidence from China Using Dynamic Panel Data Analysis, Volume 22, Issue 1,
 Solow, Robert M. (1956). A Contribution to the Theory of Economic Growth, Quarterly
Journal of Economics, Vol. 70, 1, pp. 69-94.
 Schütt, F. (2003). The Importance of Human Capital for Economic Growth, Band 27, Bremen
University, International Management Institute, pp. 9.
 Javier, A., Domenech, R. and Molinas C. (1996)/ Macroeconomic Performance and Convergence
in OECD Countries, European Economic Review, 40, pp. 1683-1704.
 Aghion, P. and Howitt, P. (1998). Endogenous growth theory, Cambridge, MA: MIT Press,
 Nelson, Richard R. Phelps, and Edmund S. (1966). Investment in Humans, Technological
Diffusion, and Economic Growth, American Economic Association Papers and Proceedings,
Vol. 56, 1-2, pp. 69-75.
 Rossi, L. (2011). Lectures of Endogenous Growth Models, Goethe University.
 Bloom, D. E., Canning, D., & Sevilla, J. (2004). The Effects of Health on Economic
Growth: A Production Function Approach. World Development, pp. 1-13.