The effect of Investment in Human Capital on Economic Growth in Algeria A standard Study within the period of: 1970 – 2015
DOI:
https://doi.org/10.33095/jeas.v25i110.1610Keywords:
الاستثمار في التعليم، النمو الاقتصادي، رأس المال البشري، طرق تحليل السلاسل الزمنية., : Investment in education, economic growth, human capital, analysis ways of time chains.Abstract
The summary:
This research paper presents a standard economic study. This study aims to build an economic standard form of the investment effect in Human Capital on Economic Growth in Algeria. The study showed that there is an inverse relationship between the investment and human capital. This is expressed by expending on education and economic growth. This contradicts with the economic theory. Such matter could be explained by that expending on education does not contribute in the economic growth. This refers to that the education sector result does not employee or save jobs. Thus, it does not contribute in growth; in addition, the Algerian economy depends on petrol in the first class. This means the absence of productive sectors. It could also be explained-actually- that the education outputs are unemployed or employed in the public sector and directed towards unproductive sectors. Accordingly, the education outputs are concentrated in public establishments and departments that are not profitable and in the unproductive sectors.
Thus, it is really important to improve the education and to invest intensely in this sector. This could be by making great efforts by the policies makers to strength the investment in education to speed up growth investment in education. This is to speed up growth that should generate the economic development.
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