Human resource, financial market development and economic growth in Saudi Arabia: a role of human capital
Journal Title: Economic Annals-XXI - Year 2018, Vol 169, Issue 1
Abstract
Human Capital (HC) is considered as a key factor in determining and accelerating the economic growth in this modern age due to productivity gains. The present study explores the impact of human resources and financial market development (FMD) on the economic growth of Saudi Arabia by using data of 1970-2017 and by applying the autoregressive distributed lag (ARDL) cointegration methodology. Our findings suggest that the interaction between HC and human resources or between capital and FMD contributes positively to the economic growth in Saudi Arabia. Further, elasticity of FMD is found greatest in comparison of other growth factors. The elasticity implies that human capital is not enough to largely support the financial market. Its improvement, however, will promote the economic growth at higher pace as an increase of 1% in FMD interacting with human capital will increase economic growth by 0.688%. The findings of our research corroborate the importance and complementarity of HC and growth factors in enhancing the economic growth and we recommend the policy makers to focus on improving human capital in the kingdom through effective educational policies.
Authors and Affiliations
Haider Mahmood, Nasser Saad Alkahtani
Keywords
Related Articles
- EP ID EP534044
- DOI 10.21003/ea.V169-06
- Views 177
- Downloads 0
Relational capital and intellectual capital management at enterprises in transitional countries: the case of Vietnam
The paper aims at investigating current status of relational capital (RC) management as a part of intellectual capital management among enterprises of emerging economies given the increasing importance of this intangible...
Multifactor models for studying the EU countries’ international trade
Successful decision-making in the field of international trade is a background for further development of international trade in a balance between the economic interests of its participants. It is based on use of the lat...
Integral assessment of the sustainable development of agriculture in Ukraine
Introduction. An integrated assessment of the accounting and analytical supplying indicators for the sustainable development of agricultural enterprises is the basis and starting point for the development of methodical a...
Cryptocurrency: present-day challenges and prospects of development
Due to digitalisation processes in economic, civic and social areas, we observe acceleration in certain processes, in particular the saturation of the financial market with modern digital means, including cryptocurrencie...
Support for foreign direct investment inflows in Serbia
The accession of Serbia to the European Union should bring stability, peace, justice, freedom and security to the Balkans. In this regard, strengthening the competitiveness of the country’s economy in order to improve it...