Open AccessHuman Capital Formation and Economic Growth in Emerging Asia: Empirical Evidence Using Panel Data
Author(s) -
Muhammad Atiq-ur Rehman,
Suleman Ghaffar,
Kanwal Shahzadi,
Rabail Ghazanfar
Publication year - 2020
Publication title -
review of applied management and social sciences
Language(s) - English
Resource type - Journals
eISSN - 2708-3640
pISSN - 2708-2024
DOI - 10.47067/ramss.v3i2.54
Subject(s) - human capital , panel data , economics , empirical evidence , endogenous growth theory , government (linguistics) , china , capital deepening , physical capital , government spending , social capital , development economics , fixed effects model , economic growth , capital formation , financial capital , geography , political science , market economy , econometrics , philosophy , linguistics , archaeology , epistemology , welfare , law
After the emergence of endogenous growth theory, the role of human capital along with physical capital is considered to be imperative in promoting economic growth. The government social sector spending, mainly on education and health, contributes in forming human capital and promotes economic growth. This study examines the impact of health and education provisions on economic growth of emerging Asian economies, including Bangladesh, China, India, Indonesia, Malaysia, Pakistan, Philippine, and Thailand. Using the data set for 1995-2018, the fixed effects (FE) and the random effect (RE) methods of panel data estimation are employed. Both methods reveal that the health and education support the human capital formation and stimulate economic growth.