The Role Of Private Human Capitals On Economic Performance And International Competitiveness Of Economy

936 Words Mar 11th, 2015 4 Pages
For the private, the process of being educated is the process of enjoying learning. With the help of education, people get more than they expect, especially the sublimation of spirit. Moreover, it is a method to accumulate human capital. Human capital is a stock of knowledge, skills and creativity. Students develop their comprehensive skills through education, increasing their competitiveness in labor market. Usually, high-educated people have high production capacity as well as higher expected earnings in work, they also have more creative ideas, making contributions to high technology and pharmaceutics. For the social, private human capitals can contribution to the national economic performance and international competitiveness of economy. The quantitative changes of educated people results in the qualitative changes of national economy. In the field of macroeconomics, the objectives of the government is to reduce unemployment as well as increase economic growth. One of the indicant to measure the economic growth is Gross Domestic Production (GDP). According to Finnish national board of education, an improvement of one-half standard deviation in mathematics and science performance at the individual level implies, by historical experience, an increase in annual growth rates of GDP per capita of 0.87%. While more detail is provided about these improvements below, suffice it to say that Finland was approximately one-half standard deviation above the OECD average over the…

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