Generating Economic Growth By Human Capital Accumulation In Mongolia

The study aims to explore whether there is a causal relationship between human capital investment(education and health investment)and economic growth in the Mongolian economy.An empirical analysis was conducted using time series data between 1997 and 2017.All of the annual data collected in this study are secondary,and the reliability of the data set comes from official sources.The fact is that all data sets are compared through official personal data to enhance the reliability of the results and further discussion.Time series data will be evaluated using the Augmented Dickey-Fuller(ADF)unit root test.After the test dataset quality,has been used Johansen Co-Integration test analysis to check for the existence of long-term relationships between variables.Assumptions about the existence of causal relationships between test variables have been examined using the Granger causality test and the(VECM)vector error correction model.The Johansen Co-Integration test explored education and health investment combined with GDP.The test results show that Johansen cointegration confirms that there is a long-term equilibrium relationship.Granger causality tests show that there is only one kind of causal relationship between educational investment and GDP.In order to take further action,the government needs to invest more education and health investment to promote the prosperity of future economic growth.This study concludes that human capital is the main source of economic development in various countries.The quality of human capital can be determined by the level of education and public health care.Investments in the education and health sectors affect the growth of human capital stocks and labor productivity.In addition,the increase in human capital has accelerated the long-term prosperity of the economy.In this regard,government investment in education and health plays an important role in the formation of human capital in the future.