Human Capital Spending, Inequality, and Growth in Middle-Income Asia
Abrigo, Michael R.M.; Lee, Sang-Hyop; Park, Donghyun | December 2017
Abstract
Asia’s rapid population aging fortifies the case for strengthening human capital investments. Further, the experience of the newly industrialized economies suggests that human capital investments will be a vital ingredient of the transition from middle income to high income. Those investments can also affect equity and public finances. In this paper, we use data from the National Transfer Accounts to empirically analyze the effect of human capital investment in Asian countries on economic growth, inequality, and fiscal balance. Our empirical evidence suggests that human capital investments have a positive effect on labor productivity and, hence, output. The positive effect is stronger for poorer households and, hence, beneficial for equity. We also find that such investments can generate sufficient tax revenues to improve the fiscal balance. Overall, our evidence points to a positive effect of human capital on growth, equity, and fiscal balance in Asia.
Citation
Abrigo, Michael R.M.; Lee, Sang-Hyop; Park, Donghyun. 2017. Human Capital Spending, Inequality, and Growth in Middle-Income Asia. © Asian Development Bank. http://hdl.handle.net/11540/7812. License: CC BY 3.0 IGO.ISSN
2313-6537 (Print)
2313-6545 (electronic)
Keywords
Development assistance
ADB
Curriculum development
Development assistance
Development aid
Development indicators
Development potential
Development models
Project appraisal
Performance appraisal
Economic development
Economic indicators
Government programs
Economic growth
Economic policy
Industrial development
Industrial policy
Technology assessment
Economic evaluation
Economic forecast
Input output analysis
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Development strategy
Development models
Economic development
Performance appraisal
Needs assessment
Input output analysis|ADB
Employment
Performance appraisal
Project failure
Project impact
Project appraisal
Career development
Vocational training
Comprehensive Development Framework
Development Challenges
Development Planning
Millennium Development Goals
Policy Development
Program Evaluation
Performance Evaluation
Evaluation Criteria
Human Capital Development
Capital Market Development
Development Economics
Financial Sector Development
Technology Development
World Development Indicators
Evaluation Methods
Aid And Development
Asian Development Bank
Comprehensive Development Framework
Development Cooperation
Development Management
Development Planning
Development Strategies
Development In East Asia
Development Planning
Development Research
Performance Evaluation
Evaluation Methods
Evaluation
Job Evaluation
Staff Development
Communication in rural development
Communication in community development
Infrastructure
Central planning
Endowment of research
Partnership
Joint venture
Nation-building
Risk assessment
Economic development projects
Economic forecasting
Industrial research
Participatory monitoring and evaluation
Economic policy
Economic forecasting
Communication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Participative management
Grievance procedures
Supervisors
Vocational guidance
Labor policy
Rural manpower policy
Career development
Applications for positions
Affirmative action programs
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