The Contribution of Human capital and Technology to European Economic Growth: An empirical exploration from a panel data

This paper empirically investigates the extent to which investments in human capital and information technology may have contributed to the growth dynamics of the European Union member states over the last decades. In order to measure the contribution of human capital and economic growth to European growth dynamics, we will apply a panel data as it helps us to incorporate both country specific and time specific shocks, hence minimizing biasdness resulting from missing variable and endogeneity problems, among other things. This is particularly significant given the fact that human capital affects growth with time lag.We expect both human capital and information technology to play a significant role to the growth rate of the European Union. However, the coefficients may not be statistically significant for Central and Easter European countries given the limitation of longer time series for some economic variables that include information technology.