Investment in Human Capital and Its Impact on the Economic Growth: The Experiences from Bangladesh
DOI:
https://doi.org/10.47604/ijecon.3542Keywords:
Impact, Investment, Human Capital, Economic Growth, BangladeshAbstract
Purpose: This paper highlights the human capital formation scenario in Bangladesh, and examines the impact of human capital on the economic growth of Bangladesh. In Economics, the term ‘Human Capital’ is used to represent the knowledge or educational qualifications, skills, capabilities and health status of the individual that stimulates economic productivity.
Methodology: This is the original research paper based on quantitative analysis. This paper employed the secondary data for 34 years (from 1990 to 2023). It applied the OLS regression model (for 24 years data from 2000 to 2023) to analyze the impact of the human capital on economic growth.
Findings: The econometric analysis revealed that the Human capital (health human capital represented by the child mortality rate and technologically skilled human capital represented by the internet users) has significant positive impact (at 1% and 10% level of significance) on the economic growth of Bangladesh.
Unique Contribution to Theory, Practice and Policy: This paper recommends to increase the education budget to 10%, offer scholarship for the financially vulnerable and drop out students, introducing research grants, training program, and finally facilitate the high quality human capital to reduce the chance of human capital fly.
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