Academic journal article Asian Social Science

The Institutional Environment of Health Reproduction as a Part of Human Capital Formation

Academic journal article Asian Social Science

The Institutional Environment of Health Reproduction as a Part of Human Capital Formation

Article excerpt

Abstract

Under conditions of the growing importance of human capital in the processes of Russia's sustainable development, the role of formal and informal institutions that provide the expanded reproduction of human capital at different levels becomes more and more significant. The subjects of the institutional environment of health reproduction processes as a part of human capital formation are presented in the issue, including identification of the key functions; a need to improve the management mechanisms of their interaction with the aim of improving the socio-economic performance of the human capital is indicated.

Keywords: human capital, health as an element of human capital, institutional enviromnent of the human capital reproduction process, the functions of the institutional enviromnent subjects, health management, perfonnance indicators of the institutional enviromnent of human capital reproduction process

1. Introduction

In the 1960s and 70s, the pioneering work of Schultz (1961) and Becker (1964) on human capital caused development economists to augment their standard economic growth models to allow for human capital investment to play a role (Hall, 2000). It is generally accepted that human capital is a reflection of the quality of labor capital, and human capital consists of economic value of knowledge, technology, ability, and healthy quality which condenses on laborers (Yang et al., 2006). Human capital usually has greater appreciation of space than material capital and other production factors, especially in the post industry era and in the stage of rapid economic knowledge development (Ma et al., 2014). The modem stage of economic transformations is characterized by the fact that human capital becomes the main value of the company, the defining factor for sustainable development and economic growth as the competitive advantages of modem finns, which are cunently achieved mainly not through material resources, but at the expense of knowledge, infonnation and innovation, which is owned by people. Generally, the fonnation of human capital mainly depends on the input of education, health and income, and so forth (Mankiw et al., 1992; Baño & Lee, 1996). The differences among education investment, health investment, and family economic income invariably tend to rise up the differences of human capital stock directly (Somanathan, 1998; Ayalew, 2005), while the differences of human capital will lead to the differences of their effects.

Actualization of issues of human capital reproduction and management as part of the transition of Russian economy to a new level of development, which is characterized by the extent of the demand and use of new knowledge, requires the mobilization of new long-tenn sources of growth, which are based on qualitative improvement of human capital as a result of interaction between the state, finns and individuals. The reproduction of human capital as an economic category, expresses the combination of the processes of fonnation, preservation, development and improvement of human capital, including knowledge, skills, abilities of a person to work, and also his physical condition, intellectual and creative abilities. Extended reproduction of human capital in the framework of the above mentioned processes depends significantly on the effectiveness of socio-economic relations.

2. Materials and Methods

The reproduction of human capital implies the dynamic development of its components; it requires certain financial investments from the individual and finns, as well as from the state (Dobrynin, 1999). The much attention is given nowadays in domestic and foreign science to the processes of human capital reproduction. Human capital is distinct from physical capital it cannot be separated from the personality, and, consequently, its reproduction is greatly influenced not only from economic but also from social processes and, above all, from the system of economic relations, within which the process of reproduction is carried out (Kristinevich, 2010). …

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