The impact of human capital on economic growth in EU-28: a Panel Data perspective

Abstract

This paper investigates the influence of education and human capital on economic growth in European Union countries before Brexit, for a time span of 14 years in the period 2003 - 2016. A panel data regression model was applied taking into account the impact of human capital on the economic growth from the perspective of education levels and human capital movement. Therefore human capital is described by the variables number of researchers, youth not in education, employment or training, the migration changing rates and the labor force for three different education levels (basic, intermediate and advanced). The dependent variable used in the paper as a measurement of economic growth was considered annual growth rate of Gross Domestic Product. The results show that the hypothesis of the importance and impact of human capital on economic growth is supported.