Human Capital and Industrialization are Key Determinants of Economic Growth: Evidence from Selected Developing Countries

Abstract

Human capital has been considered as a major source of economic growth. It surely contributes to enhancing economic growth and development. Considering this, we have examined the key determinants of economic growth in nine developing economies. For this, the authors have used data from 2011 to 2020 from selected developing nations. In this research, GDP per capita is taken as the dependent variable.  The random effect results highlight that industrialization and human capital lead to enhanced growth of economies. Moreover, the role of urbanization in promoting growth potential is also positive. Finally, foreign direct investment also seems to be increasing the economic growth in the concerned economies.  The study findings recommend that these economies should focus more on free-of-cost higher education for boosting economic growth. There is also a need for a stable financial and political environment for attracting more industrialization and foreign direct investment.