The impact of human capital and innovation determinants on economic growth: evidence from Georgia

The hyper-competitive global economy of the twenty-first century has become an era of innovation, technology, productivity, new knowledge, and skills, focused on sustainable and inclusive growth. Human capital is one of the fundamental factors for ensuring sustainable and inclusive growth. The process of human capital formation is long and is influenced by many factors. Its measurement is one of the actual issues. The negative effects caused by the pandemic were added to the humanitarian, economic, logistical, and other types of problems caused by the Russia-Ukraine war, which took on a global character and affected all countries of the world with more or less severity. This study aims at providing a theoretical concept of human capital measurement and innovation activity indicators. The paper studies the role of human capital and innovation activity for a country’s development based on the experience of Georgia. For this purpose, multiply regression models have been built and evaluate. The empirical results based on models and coefficient’s significance suggest causality between human capital, innovation activity and the economic growth of Georgia: Contribution of human capital and innovation activity to economic growth is essential.
Acemoglu, D., Johnson, S., Robinson, J. A., & Yared, P. (2005). From education to democracy? The American Economic Review, 95(2), 44-99. Appiah E. N. (2017) The Effect of Education Expenditure on Per Capita GDP in Developing Countries. International Journal of Economics and Finance; Vol. 9, No. 10; Hanushek, E. A., & Wößmann, L. (2010). Education and Economic Growth. In P. Peterson, E. Baker, & B. McGaw (Eds.), International Encyclopedia of Education (Vol. 2, pp. 245-252). Harpan I., Draghici A. (2014) DEBATE ON THE MULTILEVEL MODEL OF THE HUMAN CAPITAL MEASUREMENT Procedia - Social and Behavioral Sciences, #124; Hanushek, E., & Kimko, D. (2000). Schooling, Labor Force Quality, and the Growth of Nations. American Economic Review, 90(5), 1184-1208. Izushi H., Huggins R., (2004) Empirical analysis of human capital development and economic growth in European regions, Cedefop Reference series, 54, Office for Official Publications of the European Communities. Mankiw, G. N. (2007). Principles of microeconomics (4th ed.). Mason, USA: Thomson South-Western Publisher. Mankiw N. G; Romer D, Weil D.N, (1992) Contribution to the Empirics of Economic Growth, The Quarterly Journal of Economics, Vol. 107, No. 2 (May 1992), pp. 407-437; Mincer, J. (1974). Schooling, Experience, and Earnings. Nat. Bur. of Economic Research, New York. Nonneman, V, Vandhoult P, (1996) A further augmentation of the Solow model and the empirics of economic growth for OECD countries, Quarterly Journal of Economics, 111 (3), pp.943-953. Pelinescu E. (2015) The impact of human capital on economic growth. Procedia Economics and Finance 22 ( 2015 ) 184 – 190 Available online at; Romer, P. M. (1990). Endogenous technological change. The Journal of Political Economy, 98(5), S71-S102. Serena María J. Freire, (2001). Human capital accumulation and economic growth, Investigaciones Económicas, vol.XXV (3), pp.585-602; Schultz, T. P. (1999). Health and schooling investment in Africa. The Journal of Economics Perspectives, 13(3), 67-88. Schultz, T. W. (1961). Investment in Human Capital, American Economic Review, 51(1), 1-17. Tiruneh M., Radvansky M. (2011) The Contribution of Human capital to European Economic Growth: An empirical exploration from a panel data. Institute of Economic Research, Slovak Academic of Sciences. Totladze L, Veshapeli G. (2021) CONCERNING THE ISSUES OF THE INFLUENCE OF THE DIGITAL TRANSFORMATION ON THE LABOUR AND LABOUR MARKET Proceedings of Materials of International Scientific Conference. Paata Gugushvili Institute of Economics, TSU, V. XIV, Tbilisi, 2021. p. 169-173 Totladze L. (2020) Government Expenditure on Education and R&D as a Factor of Homan Capital and its Impact on Economic Growth. International Scientific Reviewed Journal “Ekonomisti”,#2,2020.ISSN1987 Totladze L., Khuskivadze M. (2020) The Effect of Foreign Direct Investments on Innovation and Technology Transfer. International Scientific-Practical Conference, Tbilisi, 2020;; Totladze L., Khuskivadze M. (2019). Human Capital and its Measurement Approaches. TSU IV International Scientific Conference “Challenges of Globalization in Economics and Business”. Tbilisi, 2019.;;;;
Human Capital; HCI; Government Expenditure in Education; Innovation Activity; Economic Growth; Econometric Model
International Journal of Business & Management Studies, Vol. 03, Issue No 09: September, 2022, p.28-33