Human Capital Formation in Bangladesh

4299 WordsApr 7, 201218 Pages
Human Capital Formation and Economic Development in Bangladesh: A Time Series Analysis Corresponding Author Usman Qammar M.Phil Scholar, National College of Business Administration and Economics (NCBA&E), 40-E/I, Gulberg-III, Lahore-54600, Pakistan. Email: economistusman@yahoo.com Cell # 0092-03216525081 Human Capital Formation and Economic Development in Bangladesh: A Time Series Analysis Abstract: It is generally accepted in Economics that there is a great role of human capital formation in determining the national income. This is the basic need and the general priority need of any country to make policies for the human welfare and Economic Development of the country. The study uses the GDP as a dependent variable and…show more content…
Three compulsory components of the resource endowment of an economy are the natural resources, human resources and physical capital (Romer 1990). The formation of human capital is a continuous process. The nation’s literacy system is influenced by its socio-economic and environment. Financing in human capital proves effective when qualified labour force is cleverly used to play its role and to step up the economic activities through government policy. The literacy rate is known to be a major component of human capital and most of the underdeveloped nations also Bangladesh consume a big part of their human development resource financing on education. Physical capital and human capital investment are compulsory if a under develop nation like Bangladesh wants to achieve an industrial level development and per capita growth through labour productive efficiency. The purpose of this study is on testing the casual relationship between the human capital formation through education and economic development of Bangladesh. The study also test the direction of causality, either the human capital formation cause economic development or economic development become causes human capital or both of them are causing and supporting to each other. Literature Review: Investment in the Physical and investment in the Human capital is considered the basic elements for the development of a nation. There are many studies
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