RELATION BETWEEN HUMAN CAPITAL AND REGIONAL ECONOMIC DEVELOPMENT IN ROMANIA
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Authors:
• PhD. Senior Researcher Elena PELINESCU, email: elena_pelinescu@yahoo.com, Afiliation: Institute for Economic Forecasting of the Romanian AcademyPages:
• 93|101 -
Keywords: human capital, regional economic development, econometric methods
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Abstract:
This paper is focused on the relation between human capital and regional economic development in Romania, in order to highlight the effect of human capital on economic development at regional level. Using Eurostat data from 2000-2014, in a panel model, Pooled Last Squared with cross fixed effects and cross section fixed dummy variable, we show a positive and statistically significant correlation between GDP growth at macro regional level and human capital expressed as the R&D effort at national level, and the workforce employed in research activities as theoretically expected. From the positive values of the coefficients within the model we conclude that the developed macro regions enjoy a high level of returns, while investing in human capital.
