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Empirical evidence(s) of human capital investments and national welfare in EU countries

Human capital represents crucial organisational element and due to its specificities is often recognized as creator of organizational success. It consists of people who work in organisation and whose knowledge, skills and abilities create and add economic value at micro and macro level. Subsequently, human capital is lately also recognised as the most important factor of national development and the key stimulus of economic growth. The purpose of this research is to explore the contribution of human capital investments in human capital intensive industries to the national welfare through the growth of gross domestic product in 28 European Union countries during the period of five years. Research hypothesis assumes that countries with greater level of human capital investments are wealthier, i.e. securing sustainable national growth. Verification of empirical evidence is provided through the sample of approximately 20, 000 company-year observations for the 2011-2015 period. Data for the analysis are obtained from Bureau Van Dijk Amadeus database of comparable financial information for public and private companies across Europe, as well as from the World Bank’s World Development Indicators database. The research is done and the results are presented using appropriate panel data analysis technique. The main findings confirm that human capital investments, i.e. average costs of employee have positive influence on the national welfare in EU countries.

Human Capital Investments ; EU countries ; Panel Analysis

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