THE ROLE OF WOMEN IN ENVIRONMENTAL PROTECTION IN IGABI LOCAL GOVERNMENT, KADUNA STATE, NIGERIA
Hypothesis 2: Ineffective Utilization of Resources has no impact on sub-optimality in production in
9. Conclusions
This research provides three types of decision support for the transition from a traditional push production system to a pull system design: (1) a method to determine the significant metrics of an evolving assembly system, (2) a method to estimate the transition functions of a system design evolving from a traditional push system to a pull system, and (3) a decision support system framework which gives guidelines for development of software employing these methods. The push simulation results were typical of those expected from a traditional push system. The push system showed relatively poor quality and high flexibility. Moderate to high congestion with variability was also noted. Process utilization was low, matching the high system flexibility. Queue times were low for the three critical processes. The regression analysis indicated that the significant performance metrics for this system were: wave solder quality, placement material flow, 1R material flow, placement quality, IR flexibility, IR quality and wave solder flexibility. Buffer size did not seem to significantly influence quality as long as the product was allowed to flow freely from station to station. When the cell down rule was added to the installed protocol of pull scheduling, quality became sensitive to buffer size. A significant increase in simulation run time was noted with the implementation of the cell down rule. For this particular system, it seemed that the improvements made in manufacturing system and process redesign were not sufficient to allow the enforcement of the cell down rule without jeopardizing significant metrics.
When the last major pull system implementation stage was completed and further buffer size
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was said to be reached. Transition from one pull system state to another was predicted using dynamic programming recursive equations. The dynamic programming stages were the major pull system implementation stages. Buffer size was the decision variable.
It was concluded that the predicted and simulated estimates of total production cost were not significantly different. The transition functions, which the predicted values were based on, were therefore said to be valid. The proposed decision support system framework gives guidelines for the development of software employing the above methods. The framework focuses on the problems encountered with the transition from a traditional manufacturing system to a pull system design. Using the described methods and DSS guidelines, a fully functional decision support system for this problem could be developed.
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Impact of human capital expenditures on economic growth of provinces in Iran by means of panel data (2001-2007)
Rahim Dalali Isfahani
Associate Professor of Economics from Isfahan University Rahman Khosh Akhlagh
Professor of Economics from Isfahan University Mahyar Shabaninejad Masouleh
M.A of economic development and planning from Isfahan University
Department of Economics, Isfahan University, Hezar-jarib Ave, Isfahan
Atefeh Nemati
M.A of Economics from Isfahan University
Abstract
This survey studies the impact of human capital on economic growth of provinces in Iran. According to Mankiw- Romer-Weil model (1992) through Cobb-Douglas production function and by means of panel data in this survey we have studied effectiveness level of two indexes of human capital, i.e. educational expenditures and health care expenditures on gross domestic product growth of the provinces in Iran during the time period 2001-2007. Results reveal that impact of health care expenditures on economic growth is higher than educational expenditures. After inserting of mutual impact variable (product of two previous indexes) its coefficient becomes positive and significant. Mutual impact shows that one percent of growth in educational and health care expenditures simultaneously is leaded to 0.09 percent growth of gross domestic product. Granger causality test illustrates a single way relation from health care expenditures to educational expenditures. This issue specifies that health of human forces has a direct impact on human capital accumulation (gaining of education and skills) in addition to production and income, since necessity of learning education and skills is to have physical health.
Key words: economic growth, human capital, panel data, endogenous growth 1. Introduction
During the first years of the 1950's it was imagined that the main reason of underdevelopment and inadequacy of the developing countries was resulted from lack of physical and material capital. Experimental studies of researchers reached to a deadlock in the 1960's so that they were not able to explain the remaining of economic growth explanation by the labor force and physical capital and on the other hand they couldn't analyze incomes distribution accurately. The observed growth in time series statistics with conventional measurements of the work factor and the applied physical capital in production of the United States of America and other developed countries in that time
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JUNE 2011 VOL 3,NO 2 major reason for failure of experimental researches until this period of time was that labor force was considered homogenous and all attempts were towards accumulation of physical capital. Economists unanimously believe that the excessive and remaining factor that explains a main part of economic growth of the developed countries has direct or indirect relation with human capital, because there are scientific and serious problems for initiation and execution of extensive economic programs in the developing countries. Executing of such programs is impossible without existence of individuals with the intended specialty and educations. On the other hand, more healthy individuals have higher physical and mental capability and lower absenteeism and finally they achieve more production level. Objective of the present survey is to study the impact level of educational and health care expenditures on economic growth of provinces in Iran by means of Mankiw-Romer-Weil model (1992) during years 2000-2006. In the following sections we will talk about human capital theory and its place in theories of economic growth. Then theoretical models of human capital, MRW model, research background, theoretical principles, model specification and estimation and at last conclusion are mentioned briefly.
2. Human capital theory
It was in the 1960's that Schultz could explain the reason for failure of previous experimental researches by introduction of human capital theory. In fact he proved this theory in the form of scientific research that many economists like Adam Smith, Robert Locus, John Stuart Mill, Malthus, Marshal and Fen Thunen in the past had implicit referring to it and stated that in the form of a theory. In 1776 Adam Smith in the book "capital of nations"
wrote: "it is possible to compare a person who has educated by spending of too much time and working with one of the expensive machineries" (Rogers and Rachline, 1992).
Generally, the concept of human capital is defined broadly in the economics literature to include education, health, training, migration, and other investments that enhance an individual’s productivity. The health, education, and growth relationship is dynamic and complementary; health capital increases the efficiency with which individuals produce education, and presumably, other forms of human capital(Gyimah-Brempong, 2004).
Human capital is totally an economic concept. Indeed, qualitative characteristics of the individual are a kind of capital, since these characteristics develop human's capabilities under education and could be converted to a higher income resource or more abundant satisfaction in the future. Such capital is humane, because it constitutes one part of the human's elements, grows with him and is destroyed by his death. Human capital complements physical capitals and increases production productivity like physical capitals (Emadzade, 2004). Schultz (1963) has listed some of the advantages of education as the following: 1) Advantages that the economy gains from educational researches. 2) Discovering and fostering of hidden talents. 3) Increasing of individuals' capability in order to adapt themselves with changes created in job opportunities. 4) Recruiting of students and educating of them for teaching (teacher training). 5) Conforming of individuals' needs with knowledge and skills.
Schultz believes that if investment opportunities in human capital are equally for all levels of the society, poor people could enhance their productivity through that and achieve higher income. Investment in individuals' education is leaded to increasing of their abilities and skills and such capabilities are reflected in their production
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JUNE 2011 VOL 3,NO 2 power. It means that educated and specialized people participate in national production in a higher proportion at equal conditions (Emadzade, 2004).
Impact of educational and health investments in Schultz view is so important that could transforms usual standards of savings measurement and the existent investments fundamentally and changes structure of wages and salaries and amount of obtained incomes from work to the proportion of incomes obtained from properties and assets (Karnoy, Aminfar, 2002).
Health besides education is considered as one of the most important aspects of the human capital. Hanushek and Dongwook (1995) and Schultz (1999) suggest that health improves an individual’s mental and intellectual capabilities, leading to better educational outcomes. Given that long-term growth is fueled by technical progress—
itself the product of increased health, education, and training—increased health can raise the growth rate of income through technical innovation. Schultz (1999) has argued, health is the ultimate indicator of the well being of a nation, hence the attainment of high stocks of health is an important aspect of development in its own right(Gyimah- Brempong, 2004).
Health can affect production level of a country through various channels. The first channel that its impact has been pointed out in most studies is better efficiency of healthy workers in comparison with others. Healthy workers work better and more than others and have a creative and more prepared mind. Along this direct impact it has indirect impacts on production too. For instance, improvement of health in human force will have the motivation to continue education and gaining of better skills, since improving of health conditions will increase attractiveness of investment in education and educational opportunities from one side and it will prepare individuals more to continue education and gain more skills by increasing of learning capability on the other side. Also enhancement of health is leaded to decreasing of mortality and increasing of life expectancy and this will encourage individuals to save more.
Following increasing of saving in the society physical capital will be enhanced and this issue will affect labor force productivity and economic growth indirectly (Weil, 2006).
3. Research Background
We can find out importance of human capital by referring to performed historical studies about impacts of human capital on economic growth. Numerous studies in the economic growth literature argue that human capital has a positive effect on economic growth (Barro, 1991, 1996; Mankiw et al, 1992; Levine & Renelt, 1992; Benhabib &
Speigel, 1994; Caselli, Esquivel,&Lefort, 1996; Barro & Lee, 1996; Sachs &Warner, 1997).
Barro and Sala-I-Martin (1995) fitted economic growth rate on indexes such as having access to gross domestic product in a sectional-time study and based on data of a group of countries in years 1965-1985. According to obtained results, education attainment that is measured with average amounts of education years has a positive and significant relation with growth. On the other hand, educational expenditures of the government have a positive and significant impact on growth. Knowels and Owen (1997) have studied the impact of health and education on
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JUNE 2011 VOL 3,NO 2 impact of health on economic growth and income differences. They used health care expenditures per capita as an index for the society's health. They investigated about the relation between health and growth with economic growth of OECD countries in the time period 1960-1990 through this index (health care expenditures) and reached to a positive and significant relation. They illustrated that education is not the only effective factor on labor force performance and productivity.
Luan Huang et al (2008) studied health, human capital and economic growth in Taiwan by means of panel data for twenty three (23) OECD countries and perceived a significant relation. Raymo applied information related to the time period 1970-1991 in order to study the role of human capital in economic growth of Japan to measure its share in gross domestic product with economic growth. The applied human capital indexes were: average amount of academic years in higher levels multiplied by number of those having a business and educational expenditures. He used educational expenditures as quality criterion of education. Results of his research revealed that the spent expenditures in education and average amount of academic years of the labor force as two indexes of human capital had a positive and significant impact on economic growth of Japan.
Blankenau and Sympson (2003) studied the relation between general educational expenditures on the economic growth by means of endogenous growth model in which both public investment and private investment towards capital accumulation were entered in the model. When other effective factors on growth act negatively, positive and direct impact of general educational expenditures could be reduced or even become negative. They showed that reaction of economic growth towards general educational expenditures may be not monotonous in the related period.
Also this relation depends on the government's expenditures level, tax structure and technological parameters.
Ghanbari et al (2008) examined the impact of human capital on Iran's economic growth. Health care expenditures were used in this study as an index for measuring of health (human capital). Estimated results that were estimated through time series data related to years 1960-2005 demonstrated the positive and significant impact of health care expenditures of the government on economic growth. Pourfaraj (2004) studied the impact of spent expenditures in education on Iran's economic growth in a study. Results illustrated that current expenditures of the government (other than educational and research expenditures) had negative impact on growth and impact of reconstruction expenditures on growth was positive. Educational and research and technico-vocational expenditures of the government had positive impact on growth. Alireza Amini and Zohreh Hejazi Azad (2007) studied the role of health in enhancing of the labor force productivity. They used life expectancy as health index (human capital). After estimation of the model by autoregressive distributed lag models (ARDL) for the period 1968-2005 they concluded that productivity of the labor force was increased 1.8 percent and about 38.2 percent of this growth was obtained because of improvement of the labor force health.
4. Theoretical models of human capital and economic growth
Modeling and theories of economic growth have traversed a long route. Solo-Swan's neoclassic model of growth is a suitable starting point for modeling of the human capital and also a basis for comparing of growth models. Solo- Swan's neoclassic model of growth has been evolved by considering exogenous technology change and then developing of it for inserting of human capital in analyses – that is known as generalized human capital Solow