Abstract

The determinants of economic growth and development are of utmost importance to the economist. The Solow growth model, the law of diminishing returns, the endogenous growth model, the catch-up effect, the Lewis Model, and Rostow’s Stages of Growth all serve as models for economic development. Additionally, historical examples like the Great Divergence and the Asian Economic Miracle all provide past examples of how countries have grown wealth. However, there are competing theories regarding what the most optimal conditions are for increased economic growth and development. The research posits that human capital is an instrumental factor in the economic growth and development of the nation. Through data from the World Bank, the model estimates an ordinary least squares and logged regression to determine whether human capital is a significant indicator of GDP per capita. Based on the regressions, human capital is a significant indicator of GDP per capita. A caveat of this notion is that there is not a definitive conclusion that higher human capital is directly casual to higher GDP per capita. Further research may assess the extent to which human capital serves as a casual mechanism for GDP per capita.

Advisor

Krause, Brooke

Department

Economics

Disciplines

Econometrics | Economic History | Growth and Development | Labor Economics | Public Economics

Keywords

economic development, economic growth, economic history, human capital, GDP per capita

Publication Date

2024

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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