Since independence in 1965, the economy of Singapore has transited from a low-income economy to a high-income developed economy. Over the period, the educational policy of the country has been framed consistent with the national economic policy and human capital formation. The article examines whether investment in human capital and employment contributed to economic growth in Singapore over the last three decades. Johansen cointegration tests find a long-run relation among economic growth, human capital investment and employed labour force. The article also enquires the dynamics of economic growth maintained with human capital investment and labor force employment involving a battery of econometric techniques. It is found that both human capital investment and employment contributes to rise in economic growth. Human capital investment at the initial stage has growth-retarding effect and eventually accelerates sustained growth with a gestation lag of 4 years. If the maintained relation persisted over time, study exhibits that human capital innovation would lead to perpetual rise in economic growth. Labour force employment innovation, in this regard, may lead to temporary rise in economic growth.
This article examines the role of monetary policy and trade openness to raise income in India for the monetary-targeting regime and the multiple-indicator approach regime of monetary policy. The impact of the key instruments of monetary policy, namely, money supply, interest rate and exchange rate, with trade openness on income, is assessed. Besides, how interest rate responds to monetary instruments, income and trade openness is studied. Empirical analysis finds a significant positive impact of the broad money supply, both in the short run and the long run, along with a negative long-run impact of the real interest rate and a positive impact of the real effective exchange rate in the variations of income. On the other hand, trade openness contributes to a rise in income in the short run, while its impact on the long run is negative. The interest rate has also responded to policy instruments, income and openness which indicates that the monetary policy is effective over the two monetary regimes.
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