[...]... presents a theoretical and empirical investigation of economic growth and the possible impact of human capital on economic growth in transition economies of Ukraine For comparison, it analyses similar processes in Russia, Poland, and Hungary as well as in some other countries in the region during the period of 1989 2009 It defines place and role of human capital in the process of transition from the exogenous... not offer complete and adequate ref lection of the transition experience The purpose of this study is to provide a systematic investigation of the human capital- economic growth nexus The impact of human capital on economic growth is incorporated within the context of economic transition Such a contextualization places the research of growth in an appropriate framework, keeping it connected to other aspects... transition economies The goal of this book is to identify the place and the role of human capital in economic growth in the market-type post-transition economies It fills the gap between the rapid economic growth as an objective economic reality of Ukraine and Russia and the lack of scholarly literature on the issue This book focuses on the role of human capital as a necessary ground for initiation of economic. .. contribution to the understanding of economic growth at the early stages of development of economic thought is undeniable Adam Smith (1723–1790) focused on the accumulation of capital as crucial for the development of early capitalism His advice was to accumulate capital and to pay for this accumulation by paying workers minimal wages Accumulation of capital leads to long-term growth Competition is in the nature... the positive effect of education on economic growth We agree with the author that the next advancement in the pace of economic growth in the transition economies will become possible only based on the process of renovation and long-term investment into principal capital This is necessitated by the high degree of depreciation of machinery and production facilities in Ukraine and other transition economies... of it can be found in the way investment requirements and the role of savings are analyzed in the formulation of the economic growth plan (p 12) The basic Harrod-Domar model (1946) makes the following assumptions First, savings is proportional to national income Hence, S ϭ sY, (4) where S is savings, Y is national income, and s is the average propensity to save Second, the amounts of capital and labor... factor of production, it is presumably the “real” capital stock that matters, but if we think of it as a store of wealth, it is presumably the value of the capital stock in terms of consumer goods that matters, and both capital/ output ratios can be constant only if the price of capital goods relative to consumer goods is constant, as it has not in fact always been Secondly, the data are far from clear about... system of the relationships The authors raise the question of to what extent the technical progress function imposes some restraint on the nature of technological change Every change in the rate of investment per worker implies a change in the extent to which innovations are actually utilized Since the capital saving innovations, which increase the output -capital ratio and output-labor ratio, are much... determining the share of investment in output and the proportion of profits saved and therefore the position of the “marginal” machine is itself fully determined by the other equations of the system It is the macro -economic condition, and not the age-and-productivity structure of machinery, which will determine what the (aggregate) share of quasi-rents will be (p 188) According to this statement, the. .. profitable to the entrepreneur than the labor saving ones that give the same rate of increase in labor productivity, and the balance of technological change will appear with higher capital consumption, the greater the rate of increase in investment per worker The main suggestion for economic policy is that any scheme that leads to the accelerated retirement of old machinery and equipment, such as taxes . class="bi x0 y0 w0 h0" alt="" THE IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH This page intentionally left blank THE IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH A Case Study in. Europe and other countries. ISBN: 978–0–230–61824–4 Library of Congress Cataloging -in- Publication Data Osipian, Ararat L. The impact of human capital on economic growth : a case study in post-Soviet. Post-Soviet Ukraine, 1989 2009 Ararat L. Osipian THE IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH Copyright © Ararat L. Osipian, 2009. All rights reserved. First published in 2009 by PALGRAVE