Human Capital and Growth in Arctic Regional Economies: Evidence, Policies and Institutional Perspectives

Abstract

The Arctic is a region known for its natural resource endowments and challenging climate. However, evidence from elsewhere suggests that human capital development might also be vital to Arctic economic growth. This article explores the role human capital plays in economic development in the Arctic through analysis of Arctic regional demographic and economic data. The available data preliminarily suggests that human capital stock growth in Arctic regions – as represented by the population with higher education – correlates more closely with economic growth than growth in the general population. The analysis is less conclusive on physical capital development’s connection to economic development as it is with human capital growth. Based on these findings, the article also highlights Arctic-centered institutions and policies that seek to bolster the Arctic region’s human capital stock.