How do structural change, human capital, productivity, and economic growth Interact?, Prof. Seema Joshi

Prof. Seema Joshi
Department of Commerce, Kirori Mal College, University of Delhi, Delhi-110007
India

Purpose: The main purpose of the paper is to understand: how do structural change (SC), human capital, productivity, and economic growth interact.
Design/Methodology/Approach: The present paper is primarily based on the examination and analysis of publications and materials emanating from academic research carried out in the past. It has been complemented by information/data obtained from other secondary sources to achieve the objectives of the study.
Findings: The paper attempts to explain the interaction /linkage between structural change, human capital, productivity, and economic growth by giving cross countries experiences from the Asia Pacific region. The paper concludes that policies do matter for getting the outcomes from this SC and human capital interaction and the implementation of the policies, country’s willingness to adapt and change the availability of soft infrastructure are the other factors that determine the outcomes. The policies can be emulated but not the institutions, therefore outcomes are different across countries.
Implications: The comparative analysis of the structural change process experienced by India vis-s-vis selected 'Miracle Economies' and its macroeconomic management gives a clear-cut policy lesson to the government of India and other emerging economies that their economic policies should be country-specific. The study emphasizes that with good macroeconomic management and broadly-based education and skill development policies (like selected Asia pacific economies), India too carries the potential to move on a high and sustainable growth path by leveraging new technologies with its already good quality human capital.
Originality/Value: Though the direct and indirect role of human capital in the process of economic growth has been recognized in many studies yet there are only a few studies that are dedicated to understanding the interaction/nexus among human capital, the process of structural transformation, productivity, and economic growth. That is how the present study is unique and relevant.