Dynamics of human capital development and competitiveness in selected European countries

Abstract

Human capital is currently considered one of the fundamental factors determining countries' competitiveness and economic prosperity. Interest in this category has arisen due to globalization and permanent technological changes that emphasise the knowledge and skills of the workforce. Most countries invest in education, health care, research and development, or support cultural development to increase human capital in society and thus contribute to improving their competitiveness in the world market. This article focuses on identifying the level of human capital in seven European countries (the Czech Republic, Germany, Hungary, Poland, Romania, Slovakia, and Sweden), comparing it with the level of competitiveness within them, as well as identifying changes in the development of the mentioned variables in the monitored countries. The research was carried out during the period of 2013 - 2022, based on statistical data from Eurostat and data reported by the World Competitiveness Center. The level of human capital and competitiveness, as well as the dynamics of their development, was assessed using standardized variable method, comparison method, one-factor analysis of variance, and convergence method. The findings show that countries with above-average levels of human capital also show above-average levels of competitiveness. At the same time, those with below-average levels of human capital also show below-average levels of competitiveness. One-factor analysis of variance, however, indicates that there is no statistically significant change in the level of human capital or in the level of competitiveness in the monitored countries in the period of 2013 - 2022, which was also confirmed in the area of competitiveness by using the convergence method. On the one hand, the observed stability in development can be perceived positively, especially in highly developed countries. On the other hand, the lagging countries should try to keep the current development level and look for improvement opportunities to approach the most developed countries gradually.