Economic Growth and Investment in Human Capital

Nowadays the main aim of any countries in the worlds to stimulate, to stabilize and to optimize the level of economic growth. Human capital is the one of the factors that contributes to this level. This paper discusses the problem of investment in human capital to improve economic efficiency. Empirical literature on investments in human capital, the profitability of these investments and the chronology of the introduction of the human capital factor in the model of economic growth were considered. Statistical and econometric analysis based on GRP per capita and regional investment data on education, health and social policy in the Russian Federation. On the basis of these data, a direct relationship between investment and economic growth was determined. A model of endogenous economic growth is developed on the basis of investments in human capital by the firm and expansion of the variety of consumer goods for the production of monopolistic competition with the arbitrary use of consumers. Two special cases were analyzed: zero population growth and low efficiency of investments in the human capital of the firm; Zero population growth and high investment efficiency in the human capital firm. In conclusion summarizes the main findings.