Oditor, Vol. VII, No. S01/2021
THE INFLUENCE OF HUMAN CAPITAL ON ECONOMIC DEVELOPMENT
Vladimir Đorđević, Milica Cvetković, Aleksandar Momčilović
Date received: 30.12.2020.
Date accepted: 05.04.2021.
The paper aims to bring closer the state of educational, demographic, economic, social, and technological processes through the analysis of the Human Development Index (HDI), which intertwine, placing the human individual at the center of all developmental flows. The findings suggest that education is the foundation of human development. According to the poverty criterion in the Republic of Serbia, the most vulnerable groups are those in which the household head is insufficiently educated, with incomplete primary school (14%), or only with primary education (20%).
The backbone of human development is economic development, which is the driver of poverty reduction. Education is also correlated with human development, creating quality conditions for the life of the individual and society as a whole. Continuous training and investment in education are important factors of human and economic development. Demographic potential as a factor of economic development in the Republic of Serbia in the period of transition has a pronounced population regression, which results in negative tendencies for the whole society, both economically, population, and sociologically.
Key words: human development, HDI index, economic development, education.