Journal of Applied Economic Research
ISSN 2712-7435
The Impact of Human Capital on Enterprise Productivity in the Russian Regions
Davidson N.B., Mariev O.S., Yunusova I.M.
Abstract
Our research is devoted to the empirical analysis of the impact of human capital development in a region on enterprise productivity. We study the impact of regional human development indicator on firms’ productivity. Our aim is to reveal the nature and strength of the external effects' impact on productivity arising from regional human capital. Based on corporate database Ruslana containing information on 76,769 Russian enterprises for the period 2006-2015, we analyzed external effects of the development of human capital for firms. While analyzing this factor which is external to a firm, we took into account specific features of the firms themselves, reflected in their involvement in international trade. The model that best fits our data is a panel data model with fixed effects. In the paper, we also discuss the results of economic research on mechanisms through which human capital affects enterprise performance. We consider the models linking human capital and innovations. The human development indicator introduced by the UN is analyzed, and a modified index is suggested. The index is interpreted from the standpoint of analyzing the standard of living attained by regions. It is also applied to understand a possible contribution of human capital into an increase in labour productivity on a firm level. The place of Russia in the world in the context of this index is described. The results confirm that the level of regional human development, along with firms’ characteristics, contribute to firms’ productivity. Conclusions from the research can provide a background for elaborating strategies for firms’ development and their successful implementation. Additionally, the conclusions can contribute to elaboration and analysis of economic policy aimed at productivity growth and economic development. We can conclude that being the aim of economic development itself, human capital also contributes to an increase in firms’ productivity. Therefore, among the determinants of labor productivity is improvement in educational and health care systems as well as improvement in individual material well-being through economic inclusion.
Keywords
human capital; human development index; external effects; productivity, innovations; Russia; regions; empirical analysis.
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About Authors
Davidson Natalia Borisovna – Philosophiae Doctor, Associate Professor, Department of International Economics, Graduate School of Economics and Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: natalya.davidson@gmail.com
Mariev Oleg Svyatoslavovitch – Candidate of Economic Sciences, Head of the Department of Econometrics and Statistics, Graduate School of Economics and Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: o.s.mariev@urfu.ru
Yunusova Irina Maratovna – Master Student in Economics, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: imyunusova@gmail.com.
For citation
Davidson N.B., Mariev O.S., Yunusova I.M. The Impact of Human Capital on Enterprise Productivity in the Russian Regions. Bulletin of Ural Federal University. Series Economics and Management, 2019, Vol. 18, No. 3, 412-430. DOI: 10.15826/vestnik.2019.18.3.021.
Article info
Received June 14, 2019; Accepted July 8, 2019.
DOI: http://dx.doi.org/10.15826/vestnik.2018.17.3.021
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