HUMAN CAPITAL, EDUCATION AND ECONOMIC GROWTH: ANALYSIS OF INVESTMENT AND POLICY IMPERATIVES IN SELECTED CEE COUNTRIES
DOI:
https://doi.org/10.35774/gsip2025.02.250Keywords:
human capital, professional education, economic growth, R&D investment, pedagogical sciences, vocational training, cognitive skillsAbstract
This paper provides an analysis of the complex interrelationships between human capital, education, and sustainable economic growth, with a critical focus on the context of Central and Eastern European (CEE) nations. The core argument posits that strategic investment in the quality of human capital, particularly within professional education and training and research and development (R&D&I), is an indispensable prerequisite for achieving endogenous economic growth and long-term prosperity. The study moves beyond measuring simple school enrollment metrics to assessing the quality of learning outcomes, utilizing measures like the World Bank's Human Capital Index (HCI) to highlight existing disparities across CEE. A significant structural deficiency common to most CEE economies is the persistent skills shortage, often arising from vocational education and training systems that lack sufficient practical relevance. The article concludes by proposing targeted fiscal and educational policy mechanisms–including R&D tax incentives focused on labor costs – essential to accelerate economic convergence, boost Total Factor Productivity (TFP), and ensure long-term corporate and national resilience.
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