Transformations  in
Business & Economics

HUMAN CAPITAL IMPACT ON THE GLOBAL PERFORMANCE OF THE EUROPEAN UNION IN THE PERIOD 2007-2019
Cristina Raluca Gh. Popescu

ABSTRACT. In order to determine the impact of human capital on the overall performance of the European Union based on the study of the literature we identified the components of human capital correlated with the factors that include or enhance them and analysed their impact on global performance in the European Union reflected by Gross Domestic Product by the analysis of linear regression between each factor and overall performance based on information extracted from the Eurostat database for the period 2007-2019. Nine factors were identified and analysed. A very strong and positive correlation, in this order, was revealed by the interdependencies between researchers working in the business sector, researchers in general, employees with higher education, researchers in higher education, on the one hand, and overall performance on the other. A strong and positive impact on global performance is determined by employees, in general, through their knowledge and skills while, not surprisingly, employees without education or only with primary education negatively influence the overall performance in the knowledge-based economy. A moderate contribution is made by researchers in the government sector, while for middle-aged employees and researchers working in the private non-profit sector no linear dependencies have been identified.

KEYWORDS:  intellectual capital; human capital; performance indicators; gross domestic product; linear regression.

JEL classification:  A10, D81, D83, O32, O34.