Study of Human Capital Development, Economic Indicators and Environmental Quality

Mayis G. Gulaliyev, Rashad S. Muradov, Leyla A. Hajiyeva, Hijran R. Muradova, Konul A. Aghayeva, Elnur S. Aliyev

Ekoloji, 2019, Issue 107, Pages: 495-503, Article No: e107023


Download Full Text (PDF)


This paper has structured the simultaneous equations including the human capital development, economic indicators and environmental quality in the period from 2002 to 2016. Acknowledging the economic value of services helps to understand that we are part of nature and have a duty to live responsibly. Human capital is widely viewed as playing an essential role in the creation of wealth and economic growth, however, our understanding of the relationship between environmental quality and other elements of human capital is just emerging. There is a strong correlation between the GDP / Oil Price and human capital expenditures (r = 0.83). Correlation between the state spending on human capital development and the GDP growth (r = 0.995) is higher than if the first variable was family spending (r = 0.9). There is a strong inverse interrelation between the level of poverty is society and total expenditure aimed at human capital (r = -0.95). The hypothesis saying that investment in human capital return in 2-4 years was not exactly true. From the econometrical result, it is concluded that there is a significantly negative relationship between environmental quality and the imbalance of economic indicators; the improvement of human capital can reduce the detrimental effects from the differences in income distribution and better the environmental quality.


human capital, environmental quality, revenues of population, developing economy, autocorrelation analysis


  • Arnold E (2005) Managing human resources to improve employee retention. The Health Care Manager, 24(2): 132-140.
  • Aşan N, Doğan G, Türkay S, Bilici M, Andıran N, Koca C (2017) Relationship of Cardiac Structures and Functions with Adiponectin, C-Reactive Protein and Interleukin-6 Levels in Obese Children. J Clin Exp Invest, 8(2):38-44. doi: 10.5799/jcei.333379
  • Atkinson RD, Mayo MJ (2010) Refueling the U.S. Innovation Economy: Fresh Approaches to Science, Technology, Engineering and Mathematics (STEM) Education. The Information Technology & Innovation Foundation, Forthcoming.
  • Budhwar PS, Debrah YA (Eds.) (2013) Human resource management in developing countries. Routledge.
  • Cash TA (2016) Public Expenditure on Education in India. Journal of Research & Innovations in Education, 2(2): 124-130.
  • Chapmana DW, Weidman J, Cohen M, Mercer M (2005) The search for quality: A five country study of national strategies to improve educational quality in Central Asia. International Journal of Educational Development, 25(5): 514-530.
  • Chueva TI, Niyazova GM, Metsler AV, Shkurkin DV, Aznabaeva GH, Kim LI (2016) Approaches to the development of endowment funds in Russia as an instrument of mixed financing of the social sphere. International review of management and marketing, 6(1S).
  • Cinnirella F, Streb J (2017) The role of human capital and innovation in economic development: evidence from post-Malthusian Prussia. Journal of economic growth, 22(2): 193-227.
  • Coleman JS (1988) Social capital in the creation of human capital. American journal of sociology, 94: S95-S120.
  • Colombo MG, Grilli L (2005) Founders’ human capital and the growth of new technology-based firms: A competence-based view. Research Policy, 34(6): 795-816.
  • Deming DJ (2017) The growing importance of social skills in the labor market. The Quarterly Journal of Economics, 132(4): 1593-1640.
  • Effimoff I (2000) The oil and gas resource base of the Caspian region. Journal of Petroleum Science and Engineering, 28(4): 157-159.
  • Fitzsimons P (2015) Human capital theory and education. In Encyclopedia of educational philosophy and theory (pp. 1-4). Springer Singapore.
  • Flamholtz EG (2012) Human resource accounting: Advances in concepts, methods and applications. Springer Science & Business Media.
  • Fleisher B, Li H, Zhao MQ (2010) Human capital, economic growth, and regional inequality in China. Journal of Development Economics, 92: 215–231
  • Gabe TM (2017) Human Capital and the Growth of Good US Jobs, In The Pursuit of Economic Development (pp. 91-118). Springer International Publishing.
  • Gambardella A, Panico C, Valentini G (2015) Strategic incentives to human capital. Strategic Management Journal, 36(1): 37-52.
  • Giroux H (2017) Critical Higher Education: Rethinking Higher Education as a Democratic Public Sphere. Encyclopedia of International Higher Education Systems and Institutions (pp. 1-3).
  • Grillner S, Ip N, Koch Ch, Koroshetz W, Okano H, et al. (2016) Worldwide initiatives to advance brain research. Nature Neuroscience, 19: 1118–1122.
  • Hafer RW (2014) Are Education and Economic Growth Related? Some Evidence from the States, Essay, Show-Me Institute.
  • Hannon III L, Beane R, Munchus G (2017) Policy outcomes, investment in human capital, and African American economic well-being. Journal of Urban Affairs, 39(1): 122-134.
  • Hanushek EA (2013) Economic growth in developing countries: The role of human capital. Economics of Education Review, 37: 204-212.
  • Hanushek EA, Woessmann L (2016) Knowledge capital, growth, and the East Asian miracle. Science, 351(6271): 344-345.
  • Hawe P, Shiell A (2000) Social capital and health promotion: a review. Social science & medicine, 51(6): 871-885.
  • Hulten C, Ramey V (2017) Introduction to Education, Skills, and Technical Change: Implications for Future US GDP Growth. In Education, Skills, and Technical Change: Implications for Future US GDP Growth. University of Chicago Press.
  • Jameel S, Naeem MZ (2016) Impact of Human Capital on Economic Growth: A Panel Study. Bulletin of Business and Economics (BBE), 5(4): 231-248.
  • Kaminsky G, Lyons R, Schmukler S (2001) Mutual fund investment in emerging markets: An overview. In International financial contagion (pp. 157-185). Springer US.
  • Kaser M (2003) The Economic and Social Impact of Systemic Transition in Central Asia and Azerbaijan. Perspectives on Global development and technology, 2(3): 459-473.
  • Lepak DP, Snell SA (2002) Examining the human resource architecture: The relationships among human capital, employment, and human resource configurations. Journal of management, 28(4): 517-543.
  • Lutz W, Butz WP, Samir KE (Eds.) (2017) World Population & Human Capital in the Twenty-First Century: An Overview. Oxford University Press.
  • Martin BC, McNally JJ, Kay MJ (2013) Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business Venturing, 28( 2): 211-224.
  • Mezue BC, Christensen CM, Bever DV (2015) The power of market creation: how innovation can spur development. Foreign Aff. 94: 69.
  • Morel N (2015) Servants for the knowledge-based economy? The political economy of domestic services in Europe. Social Politics: International Studies in Gender, State & Society, 22(2): 170-192.
  • Morris SS, Alvarez SA, Barney JB, Molloy JC (2017) Firm‐specific human capital investments as a signal of general value: Revisiting assumptions about human capital and how it is managed. Strategic Management Journal, 38(4): 912-919.
  • Oncel-Acir, N., Solmaz, H., Cetinkaya, S., Savas, C., Dadaci, Z., Borazan, M (2017) Herpes zoster infection after an uncomplicated cataract surgery: A case report. European Journal of General Medicine, 14(4), 114-115. doi: 10.29333/ejgm/81743
  • Oztunc H, Oo ZC, Serin ZV (2015) Effects of Female Education on Economic Growth: A Cross Country Empirical Study. Educational Sciences: Theory and Practice, 15(2): 349-357.
  • Petrakis PE, Stamatakis D (2002) Growth and educational levels: a comparative analysis. Economics of Education Review, 21: 513–521.
  • Phelps CE (2017) Health economics. Routledge.
  • Postiglione GA (2015) Education and social change in China: Inequality in a market economy. Routledge.
  • Raut LK (2017) Education and economic growth. Sustaining High Growth in India, 349.
  • Romer PM (1990) Endogenous technical change. Journal of Political Economy, 98: 571–593.
  • Unger JM, Rauch A, Frese M, Rosenbusch N (2011) Human capital and entrepreneurial success: A meta-analytical review. Journal of business venturing, 26(3): 341-358.
  • Wright PM, McMahan GC (2011) Exploring human capital: putting ‘human’ back into strategic human resource management. Human Resource Management Journal, 21(2): 93-104.
  • Zhu S, Li R (2017) Economic complexity, human capital and economic growth: empirical research based on cross-country panel data. Applied Economics, 49(38): 3815-3828.