Expanded concept of human capital as intangible resource at macro level

Žaneta Karazijienė, Artūras Jurgelevičius

Research output: Contribution to journalArticle


The subject of the research is the human capital as intangible resource at macro level in European countries. The aim of the research paper is to propose expanded concept of human capital differentiating it into three dimensions (qualitative, quantitative and value orientation) and empirically apply this concept for European countries. In the research paper, it is believed that classical understanding of human capital as skills, knowledge and educational attainment is incomplete. The values and attitudes are embodied in individuals the same as skills and knowledge. Having high level of educational attainment can be treated only as necessary but not sufficient requirement for human capital’s value growth. It is assumed that value orientation is complementary for human capital value creation. To assess these relationships the composite indicator methodology has been applied. The results revealed that societies with higher qualitative dimension of human capital possess with more tolerance, more openness for different individuals with various cultural backgrounds, trust people more and are more motivational. The strong and positive relationship has been identified between these two dimensions. Scandinavian and Western European countries scored the highest points. Meanwhile Eastern, Central and Southern European countries were categorized as countries with low and very low scores. The conducted research points out the benchmark group of the level of accumulated human capital and lies strategic orientation for policy makers. It is essential and critical to understand the significance of expanded human capital concept as a key factor for economic development especially in the context of knowledge based economy.
Original languageEnglish
Pages (from-to)141-156
JournalMontenegrin Journal of Economics
Issue number4
Publication statusPublished - 2016



  • Human capital
  • Quality of human capital
  • Value orientations

Cite this