The Role of Human Capital in the Development of Regions

In recent decades, Russia is going through a difficult period in the economy, which are accompanied by population decline, a decrease in real incomes, high degree of depreciation of fixed assets, rising unemployment and the deterioration of the education system. However, the development of information technology and support high-tech sectors the government has identified one of the main directions of development for 2016-2018 year. Therefore, the study human capital determinant of economic development is relevant. The distinguishing feature of this study lies in the use of new data, therefore, the results are relevant. In addition, the paper takes into account the assumption that the measures of human capital do not give returns in one period with its acquisition. I assume that the capital is accumulated and applied, but the impact on the results will provide only after a certain period of time. In this work, the time lag is five years. The aim of this study is to determine the effect of human capital on the level of economic development 78 regions of Russia in the period from 2005-2014 Feature of the study is to use several factors in the quality of human capital is education, salaries and investment in education. The result is that human capital positively affects the economic development of the regions of the Russian Federation.