Economic Analysis: Theory and Practice
 

An impact of human capital on the sustainable economic development

Vol. 16, Iss. 12, DECEMBER 2017

Received: 6 July 2017

Received in revised form: 30 July 2017

Accepted: 20 August 2017

Available online: 22 December 2017

Subject Heading: ANALYSIS OF HUMAN CAPITAL

JEL Classification: C82, C88, O4, O15, O33

Pages: 2224–2237

https://doi.org/10.24891/ea.16.12.2224

Baranova N.M. Peoples' Friendship University of Russia, Moscow, Russian Federation
baranova_nm@rudn.univesity.ru

Sorokin L.V. Peoples' Friendship University of Russia, Moscow, Russian Federation
sorokin_lv@rudn.univesity.ru

Importance Leading scholars around the world express their concerns about a rapid economic growth that can but decline one day. It will inevitably deplete all possible resources, i.e. raw materials, human and natural resources. There is no need in striving to an uncontrollable economic growth, while it can be substituted with sustainable development and reduce disparity in economic development of nations.
Objectives The research analyzes the effect of human capital on the sustainable development of economy.
Methods We use statistical data of the World Bank and the UN Development Program. They underlie a cluster analysis of some States with different levels of human capital, socio-economic development and environmental situation. OriginPro 8.6 was used to visualize the data.
Results Nowadays, developed countries demonstrate lower economic growth rates in comparison with developing economies, which retrofit their manufacturing sectors, implement the state-of-the-art technologies, involve cheap manpower and labor discrimination, low environmental standards. Having adopted the concept of sustainable development, developed countries pursue the compliance with it by moving their science and technologies forward, taking care of the living standards of the current and future generations, thus obstructing their economic growth.
Conclusions and Relevance Currently, natural resources diminished almost to their depletion, and economic growth is mainly driven by innovative developments and discoveries. Sustainable development requires not only investment and new technologies, but also the revision of civilization priorities, refusal from certain benefits for the sake of the future generations to come.

Keywords: human capital, sustainable development, economic growth, urbanization, environmental standards

References:

  1. Harrod R.F. An Essay in Dynamic Theory. The Economic Journal, 1939, vol. 49, iss. 193, pp. 14–33. URL: https://doi.org/10.2307/2225181
  2. Domar E. Capital Expansion, Rate of Growth and Employment. Econometrica, 1946, vol. 14, iss. 2, pp. 137–147. URL: https://doi.org/10.2307/1905364
  3. Solow R.M. A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 1956, vol. 70, iss. 1, pp. 65–94.
  4. Swan T.W. Economic Growth and Capital Accumulation. Economic Record, 1956, vol. 32, iss. 2, pp. 334–361. URL: https://doi.org/10.1111/j.1475-4932.1956.tb00434.x
  5. Barro R.J., Sala-i-Martin X. Ekonomicheskii rost [Economic Growth]. Moscow, BINOM, Laboratoriya znanii Publ., 2010, 824 p.
  6. Lucas R.E. O mekhanike ekonomicheskogo razvitiya. Lektsii po ekonomicheskomu rostu [Russian edition. On the Mechanics of Economic Development. Lectures on Economic Growth]. Moscow, Gaidar Institute Publ., 2013, pp. 37–100.
  7. Ponomareva E.A., Bozhechkova A.V., Knobel' A.Yu. Faktory ekonomicheskogo rosta [Drivers of economic growth]. Moscow, Delo Publ., 2012, pp. 21–24.
  8. Jain R.K., Triandis H.C., Weick C.W. Managing Research, Development and Innovation: Managing the Unmanageable. John Wiley & Sons, 2010, 419 p.
  9. Tsvetkov V.A. [The present and future of the manufacturing sector of the national economy]. Strategicheskoe planirovanie i razvitie predpriyatii: materialy XVIII Vserossiiskogo simpoziuma [Proc. 18th Sci. Conf. Strategic Planning and Evolution of Enterprises]. Moscow, CEMI RAS Publ., 2017, 215 p.

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 17, Iss. 5
May 2018

Archive