Relationship between economic growth and human capital in Ecuador, Chile and Germany

Abstract

The objective of this research is to examine the effect of human capital on economic growth in the countries of Ecuador, Chile and Germany in the period 1960-2015. Data from World Development Indicators (WDI), developed by the World Bank (2016), were used. The dependent variable is economic growth and the independent variable is human capital. The results found in this research show that human capital is statistically insignificant in the case of Chile and Germany, contrary results in the case of Ecuador, however, it positively explains the variations in production for Ecuador, Chile and Germany. It is for this reason that the accumulation of human capital in economic growth, especially in Ecuador, should be emphasized, and Solow’s model, which explains the economic growth (production) and the variables that influence it, must be verified. In order to better explain the model we use the variables of control, saving, trade and inflation, and we conclude that inflation and trade are statistically significant for the three countries, however, saving is only statistically significant for Germany.