The Economic Growth of Countries : A Part from The Book : Foundationless Economy and Prosperity

Today, modern economists believe that labor quality plays a key role in contributing to the economic growth of countries. Indeed, from agricultural development to industry and services, or from industry 1.0 to industry 4.0, the role of human resource quality is key, high-quality and productive labor helps create wealth for the nation. Romer argues that human capital influences the supply of new ideas and technologies. In Rebel’s AK models, growth is directly related to the quality of human resources with the main factor being human capital. Which is preceded by earlier models in the technology adoption models of Nelson and Phelps, in which a country’s human capital endowment affects the rate of input of new technology and thus the affect growth. Below depicts the relationship between the human development index (HDI) and the average income (GNI) of some countries, showing the development of HDI, a representative measure of human resource quality, because HDI measures through three groups of criteria (health, knowledge and income). This result is quite similar to modern theories because human resources with high knowledge create creativity and innovation, contributing to increased income.

Author(s) Details:

Nguyen Anh Phong,
University of Economics and Law, Ho Chi Minh City, Vietnam and Vietnam National University, Ho Chi Minh City, Vietnam.

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