Neoclassical Growth Model Application to the Analysis of Human Capital for Regional Development

Abstract

Human resource development has a strategic meaning for the development progress of a nation. Countries that succeed in its national development factually give great attention to human resource development. Some studies suggest the importance of externalities and human resources factors to spur economic growth. The indications of human resources have a role in smoothing the process of technology transfer and creation, the idea that high investment in human capital is a prerequisite that must be done in advance, in the process of economic growth, to support investment in physical capital. This paper aims to discuss the neoclassical growth model providing a basis for understanding the differences among the interregional growth related factors that affected of different growth in economic development.