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70-413: Asian Tigers may refer to: Four Asian Tigers , an economic group comprising Hong Kong, Singapore, South Korea, and Taiwan Asian Tigers (militant group) , a Pakistani organization The mainland Asian tiger subspecies, Panthera tigris tigris . Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with

140-404: A capital asset . However it is broken down or defined, human capital is vitally important for an organization's success (Crook et al., 2011); human capital increases through education and experience. Human capital is also important for the success of cities and regions: a 2012 study examined how the production of university degrees and R&D activities of educational institutions are related to

210-528: A corporate environment. The reasoning of which being that higher education creates the illusion of a meritocracy, thus justifying economic inequality to the benefit of capitalists, regardless of whether the educated human capital actually provides additional labor value. When human capital is assessed by activity-based costing via time allocations it becomes possible to assess human capital risk. Human capital risks can be identified if HR processes in organizations are studied in detail. Human capital risk occurs when

280-772: A justification for government subsidies for education and job skills training. It was assumed in early economic theories, reflecting the context – i.e., the secondary sector of the economy was producing much more than the tertiary sector was able to produce at the time in most countries – to be a fungible resource , homogeneous, and easily interchangeable, and it was referred to simply as workforce or labor , one of three factors of production (the others being land, and assumed-interchangeable assets of money and physical equipment). Just as land became recognized as natural capital and an asset in itself, human factors of production were raised from this simple mechanistic analysis to human capital. In modern technical financial analysis,

350-431: A key factor, the 2018 Nobel Prize for Economics was jointly awarded to Paul Romer , who founded the modern innovation-driven approach to understanding economic growth. In the recent literature, the new concept of task-specific human capital was coined in 2004 by Robert Gibbons , an economist at MIT , and Michael Waldman , an economist at Cornell University . The concept emphasizes that in many cases, human capital

420-504: A measure of human capital which directly accounts for the knowledge and skills acquired from schooling, rather than using schooling alone, now widely recognized to be an incomplete proxy. The learning outcomes data, methodology, and applications to the human capital literature underlying this effort were published in Nature . A new measure of expected human capital calculated for 195 countries from 1990 to 2016 and defined for each birth cohort as

490-509: A mechanism by which workers with superior innate abilities can signal those abilities to prospective employers and so gain above average wages. The concept of human capital can be infinitely elastic, including unmeasurable variables such as personal character or connections with insiders (via family or fraternity). This theory has had a significant share of study in the field proving that wages can be higher for employees on aspects other than human capital. Some variables that have been identified in

560-636: A much greater influence than the World Bank report suggested. Prior to the 1997 Asian financial crisis , the growth of the Four Asian Tiger economies (commonly referred to as "the Asian Miracle") has been attributed to export oriented policies and strong development policies. Unique to these economies were the sustained rapid growth and high levels of equal income distribution. A World Bank report suggests two development policies among others as sources for

630-557: A number of studies argued that state intervention was important in the East Asian growth miracle. He has argued "it is impossible to understand the East Asian growth miracle without appreciating the important role that government policy played in stimulating private investment". The Tiger economies experienced a setback in the 1997 Asian financial crisis . Hong Kong came under intense speculative attacks against its stock market and currency necessitating unprecedented market interventions by

700-416: A point, consumption is investment in personal productive capacity. This is especially important in connection with children: reducing unduly expenditure on their consumption may greatly lower their efficiency in after-life. Even for adults, after we have descended a certain distance along the scale of wealth, so that we are beyond the region of luxuries and "unnecessary" comforts, a check to personal consumption

770-460: A population. These resources are the total capacity of the people that represents a form of wealth that can be directed to accomplish the goals of the nation or state or a portion thereof. The human capital is further distributed into three kinds; Many theories explicitly connect investment in human capital development to education, and the role of human capital in economic development, productivity growth, and innovation has frequently been cited as

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840-622: A secondary education enrollment rate of 88% by 1987. There was also a notable decrease in the gap between male and female enrollments during the Asian miracle. Overall these advances in education allowed for high levels of literacy and cognitive skills. The creation of stable macroeconomic environments was the foundation upon which the Asian miracle was built. Each of the Four Asian Tiger states managed, to various degrees of success, three variables in: budget deficits , external debt and exchange rates . Each Tiger nation's budget deficits were kept within

910-427: A standard reference for many years. In this view, human capital is similar to " physical means of production ", e.g., factories and machines: one can invest in human capital (via education, training, medical treatment) and one's outputs depend partly on the rate of return on the human capital one owns. Thus, human capital is a means of production , into which additional investment yields additional output. Human capital

980-439: A workman may be considered in the same light as a machine or instrument of trade which facilitates and abridges labor, and which, though it costs a certain expense, repays that expense with a profit. Therefore, Smith argued, the productive power of labor are both dependent on the division of labor: The greatest improvement in the productive powers of labor, and the greater part of the skill, dexterity, and judgement with which it

1050-618: Is a concept used by economists to designate personal attributes considered useful in the production process . It encompasses employee knowledge , skills , know-how , good health , and education . Human capital has a substantial impact on individual earnings. Research indicates that human capital investments have high economic returns throughout childhood and young adulthood. Companies can invest in human capital; for example, through education and training , improving levels of quality and production. Adam Smith included in his definition of capital "the acquired and useful abilities of all

1120-555: Is a significant influence of Confucianism on the corporate and political institutions of the Asian Tigers. Prime Minister of Singapore Lee Kuan Yew advocated Asian values as an alternative to the influence of Western culture in Asia. This theory was not without its critics. There was a lack of mainland Chinese economic success during the same time frame as the Four Tigers, and yet China was

1190-521: Is accumulated specific to the nature of the task (or, skills required for the task), and the human capital accumulated for the task are valuable to many firms requiring the transferable skills. This concept can be applied to job-assignment, wage dynamics, tournament, promotion dynamics inside firms, etc. Human capital in a broad sense is a collection of activities: all the knowledge, skills, abilities, experience, intelligence, training and competences possessed individually and collectively by individuals in

1260-467: Is also a check to investment. But the term only found widespread use in economics after its popularization by economists of the Chicago School , in particular Gary Becker , Jacob Mincer , and Theodore Schultz . The early 20th century Austrian sociologist Rudolf Goldscheid 's theory of organic capital and the human economy also served as a precedent for later concepts of human capital. The use of

1330-455: Is anywhere directed, or applied, seem to have been the effects of the division of labor. There is a complex relationship between the division of labor and human capital. In the 1990s, the concept of human capital was extended to include natural abilities, physical fitness and healthiness, which are crucial for an individual's success in acquiring knowledge and skills. As a result of his conceptualization and modeling work using Human Capital as

1400-399: Is deceleration of monetary capital. On the other hand, human capital has uniformly rising rate of growth over a long period of time because the foundation of this human capital is laid down by the educational and health inputs. The current generation is qualitatively developed by the effective inputs of education and health. The future generation is more benefited by the advanced research in

1470-410: Is distinctly different from the tangible monetary capital due to the extraordinary characteristic of human capital to grow cumulatively over a long period of time. The growth of tangible monetary capital is not always linear due to the shocks of business cycles . During the period of prosperity, monetary capital grows at relatively higher rate while during the period of recession and depression, there

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1540-518: Is due in no small part to each country's government fiscal stimulus measures. These fiscal packages accounted for more than 4% of each country's GDP in 2009. Another reason for the strong bounce back is the modest corporate and household debt in these four nations. A 2011 article published in Applied Economics Letters by financial economist Mete Feridun of University of Greenwich Business School and his international colleagues investigates

1610-450: Is inherent to the person, useful for personal, professional and organizational development, and participates to social cohesion and has personal, economic and social returns (Gendron, 2004, 2008). Social capital , the sum of social bonds and relationships, has come to be recognized, along with many synonyms such as goodwill or brand value or social cohesion or social resilience and related concepts like celebrity or fame , as distinct from

1680-543: Is invested in education and health care for young people. The World Bank's 2019 World Development Report on The Changing Nature of Work showcases the Index and explains its importance given the impact of technology on labor markets and the future of work. One of the central innovations of the World Bank Human Capital Index was the inclusion and harmonization of learning data across 164 countries. This introduced

1750-675: Is one of the three primary components of intellectual capital (which, in addition to tangible assets, comprise the entire value of a company). Human capital is the value that the employees of a business provide through the application of skills, know-how and expertise. It is an organization's combined human capability for solving business problems. Human capital is inherent in people and cannot be owned by an organization. Therefore, human capital leaves an organization when people leave. Human capital also encompasses how effectively an organization uses its people resources as measured by creativity and innovation. A company's reputation as an employer affects

1820-500: Is substitutable, but not transferable like land, labor, or fixed capital . Some contemporary growth theories see human capital as an important economic growth factor. Further research shows the relevance of education for the economic welfare of people. Adam Smith defined four types of fixed capital (which is characterized as that which affords a revenue or profit without circulating or changing masters). The four types were: Smith defined human capital as follows: Fourthly, of

1890-498: The New-York Daily Tribune "The Emancipation Question," January 17 and 22, 1859, although there the term is used to describe humans who act like a capital to the producers, rather than in the modern sense of "knowledge capital" endowed to or acquired by humans. Neo-Marxist economists have argued that education leads to higher wages not by increasing human capital, but rather by making workers more compliant and reliable in

1960-686: The Economic Development Board formulated and implemented national economic strategies to promote the country's manufacturing sector. Industrial estates were set up and foreign investment was attracted to the country with tax incentives. Meanwhile, Taiwan and South Korea began to industrialize in the mid-1960s with heavy government involvement including initiatives and policies. Both countries pursued export-oriented industrialization as in Hong Kong and Singapore. The four countries were inspired by Japan's evident success, and they collectively pursued

2030-475: The National Taiwan University , Chinese University of Hong Kong , The Hong Kong University of Science and Technology , Seoul National University , National University of Singapore , Nanyang Technological University and University of Hong Kong . The cities of Hong Kong, Singapore and Seoul are prominent hubs in higher education. The role of Confucianism has been used to explain the success of

2100-473: The Tiger Cub Economies of Southeast Asia. In 1993, a World Bank report The East Asian Miracle credited neoliberal policies with the economic boom, including the maintenance of export-oriented policies , low taxes and minimal welfare states . Institutional analyses found that some level of state intervention was involved. Some analysts argued that industrial policy and state intervention had

2170-720: The World Economic Forum has annually published its Global Human Capital Report, which includes the Global Human Capital Index (GHCI). In the 2017 edition, 130 countries are ranked from 0 (worst) to 100 (best) according to the quality of their investments in human capital. Norway is at the top, with 77.12. In October 2018, the World Bank published the Human Capital Index (HCI) as a measurement of economic success. The Index ranks countries according to how much

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2240-602: The financial crisis of 2007–08 . By the fourth quarter of 2008, the GDP of all four nations fell by an average annualized rate of around 15%. Exports also fell by a 50% annualized rate. Weak domestic demand also affected the recovery of these economies. In 2008, retail sales fell 3% in Hong Kong, 6% in Singapore and 11% in Taiwan. As the world recovered from the financial crisis, the Four Asian Tiger economies have also rebounded strongly. This

2310-402: The talent that an individual (such as an athlete has uniquely) has developed that cannot be passed on to others regardless of effort, and those aspects that can be transferred or taught: instructional capital. Less commonly, some analyses conflate good instructions for health with health itself, or good knowledge management habits or systems with the instructions they compile and manage, or

2380-442: The " intellectual capital " of teams – a reflection of their social and instructional capacities, with some assumptions about their individual uniqueness in the context in which they work. In general, these analyses acknowledge that individual trained bodies, teachable ideas or skills, and social influence or persuasion power, are different. Management accounting is often concerned with questions of how to model human beings as

2450-551: The "return on human capital" differs between comparably skilled labor-market groups or segments. Following Becker, the human capital literature often distinguishes between "specific" and "general" human capital. Specific human capital refers to skills or knowledge that is useful only to a single employer or industry, whereas general human capital (such as literacy) is useful to all employers. Economists view firm-specific human capital as risky, since firm closure or industry decline leads to skills that cannot be transferred (the evidence on

2520-545: The 2023 QS University Rankings , the top 100 universities in the world include 5 universities from Hong Kong, 6 universities from South Korea, 2 from Singapore and 1 from Taiwan. Despite the small populations and the relatively short history of universities in the four countries, they together account for a quarter of the top 100 universities located outside of the United States or the United Kingdom . Notable schools include

2590-464: The Asian miracle: factor accumulation and macroeconomic management. The Hong Kong economy was the first out of the four to undergo industrialization with the development of a textile industry in the 1950s. By the 1960s, manufacturing in the British colony had expanded and diversified to include clothing, electronics, and plastics for export orientation . Following Singapore's independence from Malaysia ,

2660-612: The Four Asian Tigers. This conclusion is similar to the Protestant work ethic theory in the West promoted by German sociologist Max Weber in his book The Protestant Ethic and the Spirit of Capitalism . The culture of Confucianism is said to have been compatible with industrialization because it valued stability, hard work, discipline, and loyalty and respect towards authority figures. There

2730-435: The acquired and useful abilities of all the inhabitants or members of the society. The acquisition of such talents, by the maintenance of the acquirer during his education, study, or apprenticeship, always costs a real expense, which is a capital fixed and realized, as it were, in his person. Those talents, as they make a part of his fortune, so do they likewise that of the society to which he belongs. The improved dexterity of

2800-552: The birthplace of Confucianism. During the May Fourth Movement of 1919, Confucianism was blamed for China's inability to compete with Western powers. In 1996, the economist Joseph Stiglitz pointed out that, ironically, "not that long ago, the Confucian heritage, with its emphasis on traditional values, was cited as an explanation for why these countries had not grown." Human capital Human capital or human assets

2870-435: The case of Thailand there exists a bidirectional causality between these variables. The results further suggest that in the case of Malaysia, financial development does not seem to cause economic growth. In 2018, the combined economy of the Four Asian Tigers constituted 3.46% of the world's economy with a total Gross domestic product (GDP) of 2,932 billion US dollars. The GDP in Hong Kong, Singapore, South Korea and Taiwan

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2940-536: The causal relationship between financial development and economic growth for Thailand , Indonesia , Malaysia , the Philippines , China, India and Singapore for the period between 1979 and 2009, using Johansen cointegration tests and vector error correction models . The results suggest that in the case of Indonesia, Singapore, the Philippines, China and India financial development leads to economic growth, whereas in

3010-427: The concept of firm-specific human capital , which includes those social relationships, individual instincts, and instructional details that are of value within one firm (but not in general), appears by way of explaining some labour mobility issues and such phenomena as golden handcuffs . Workers can be more valuable where they are simply for having acquired this knowledge, these skills and these instincts. Accordingly,

3080-403: The conventional office model) taking most of their knowledge and relationships with them. Human capital when viewed from a time perspective consumes time in one of these key activities: Despite the lack of formal ownership, firms can and do gain from high levels of training, in part because it creates a corporate culture or vocabulary teams use to create cohesion. In recent economic writings

3150-473: The country's high level of exports. Exchange rates in the Four Asian Tiger nations had been changed from long-term fixed rate regimes to fixed-but-adjustable rate regimes with the occasional steep devaluation of managed floating rate regimes. This active exchange rate management allowed the Four Tiger economies to avoid exchange rate appreciation and maintain a stable real exchange rate. Export policies have been

3220-505: The de facto reason for the rise of these Four Asian Tiger economies. The approach taken has been different among the four nations. Hong Kong, and Singapore introduced trade regimes that were neoliberal in nature and encouraged free trade, while South Korea and Taiwan adopted mixed regimes that accommodated their own export industries. In Hong Kong and Singapore, due to small domestic markets, domestic prices were linked to international prices. South Korea and Taiwan introduced export incentives for

3290-416: The early 21st century, these economies had developed into high-income economies , specializing in areas of competitive advantage. Hong Kong and Singapore have become leading international financial centres , whereas South Korea and Taiwan are leaders in manufacturing electronic components and devices. Large institutions have pushed to have them serve as role models for many developing countries , especially

3360-467: The expected years lived from age 20 to 64 years and adjusted for educational attainment, learning or education quality, and functional health status was published by The Lancet in September 2018. Finland had the highest level of expected human capital: 28·4 health, education, and learning-adjusted expected years lived between age 20 and 64 years. Niger had the lowest at less than 1·6 years. Measuring

3430-400: The field of education and health, undertaken by the current generation. Therefore, the educational and health inputs create more productive impacts upon the future generation and the future generation becomes superior to the current generation. In other words, the productive capacity of future generation increases more than that of current generation. Therefore, rate of human capital formation in

3500-423: The firm gains for their unwillingness to leave and market talents elsewhere. In some way, the idea of "human capital" is similar to Karl Marx 's concept of labor power : he thought in capitalism workers sold their labor power in order to receive income (wages and salaries). But long before Mincer or Becker wrote, Marx pointed to "two disagreeably frustrating facts" with theories that equate wages or salaries with

3570-572: The four economies far exceeded other countries at similar levels of development. This subsequently led to a rapid growth in per capita income levels. While high investments were essential to their economic growth, the role of human capital was also important. Education in particular is cited as playing a major role in the Asian economic miracle. The levels of education enrollment in the Four Asian Tigers were higher than predicted given their level of income. By 1965, all four nations had achieved universal primary education. South Korea in particular had achieved

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3640-460: The future generation happens to be more than the rate of human capital formation in the current generation. This is the cumulative growth of human capital formation generated by superior quality of manpower in the succeeding generation as compared to the preceding generation. Human capital is an intangible asset , and it is not owned by the firm that employs it and is generally not fungible. Specifically, individuals arrive at 9am and leave at 5pm (in

3710-660: The human capital index of individual firms is also possible: a survey is made on issues like training or compensation , and a value between 0 (worst) and 100 (best) is obtained. Enterprises which rank high are shown to add value to shareholders. Human capital management (HCM) is the term used to describe workforce practices and resources that focus on maximizing needed skills through the recruitment, training, and development of employees. Departments and software applications responsible for HCM often manage tasks that include administrative support, reporting and analytics, education and training, and hiring and recruitment. Human capital

3780-467: The human capital it draws. Some labor economists have criticized the Chicago-school theory, claiming that it tries to explain all differences in wages and salaries in terms of human capital. One of the leading alternatives, advanced by Michael Spence and Joseph Stiglitz , is "signaling theory". According to signaling theory, education does not lead to increased human capital, but rather acts as

3850-564: The human capital of metropolitan areas in which they are located. In 2010, the OECD encouraged the governments of advanced economies to embrace policies to increase innovation and knowledge in products and services as an economical path to continued prosperity . International policies also often address human capital flight , which is the loss of talented or trained persons from a country that invested in them, to another country which benefits from their arrival without investing in them. Since 2012

3920-426: The inhabitants or members of the society". The first use of the term "human capital" may be by Irving Fisher . An early discussion with the phrase "human capital" was from Arthur Cecil Pigou : There is such a thing as investment in human capital as well as investment in material capital. So soon as this is recognised, the distinction between economy in consumption and economy in investment becomes blurred. For, up to

3990-503: The interest on human capital. An employer must be receiving a profit from his operations, so that workers must be producing what Marx (under the labor theory of value ) perceived as surplus-value , i.e., doing work beyond that necessary to maintain their labor power . Though having "human capital" gives workers some benefits, they are still dependent on the owners of non-human wealth for their livelihood. The term appears in Marx's article in

4060-401: The limits of their financial limits, as to not destabilize the macro-economy. South Korea in particular had deficits lower than the OECD average in the 1980s. External debt was non-existent for Hong Kong, Singapore and Taiwan, as they did not borrow from abroad. Although South Korea was the exception to this – its debt to GNP ratio was quite high during the period 1980–1985, it was sustained by

4130-411: The literature of the past few decades include, gender and nativity wage differentials, discrimination in the work place, and socioeconomic status. The prestige of a credential may be as important as the knowledge gained in determining the value of an education. This points to the existence of market imperfections such as non-competing groups and labor-market segmentation . In segmented labor markets,

4200-558: The organization operates below attainable operational excellence levels. For example, if a firm could reasonably reduce errors and rework (the process component of human capital) from 10,000 hours per annum to 2,000 hours with attainable technology, the difference of 8,000 hours is human capital risk. When wage costs are applied to this difference (the 8,000 hours) it becomes possible to financially value human capital risk within an organizational perspective. Risk accumulates in four primary categories: In corporate management , human capital

4270-589: The quantitative importance of firm specific capital is unresolved). Human capital is central to debates about welfare , education , health care , and retirement . In 2004, "human capital" ( German : Humankapital ) was named the German Un-Word of the Year by a jury of linguistic scholars, who considered the term inappropriate and inhumane , as individuals would be degraded and their abilities classified according to economically relevant quantities. "Human capital"

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4340-479: The same goal by investing in the same categories: infrastructure and education. They also benefited from foreign trade advantages that set them apart from other countries, most significantly economic support from the United States; part of this is manifested in the proliferation of American electronic products in common households of the Four Tigers. By the end of the 1960s, levels in physical and human capital in

4410-645: The state Hong Kong Monetary Authority . South Korea was hit the hardest as its foreign debt burdens swelled resulting in its currency falling between 35 and 50%. By the beginning of 1997, the stock market in Hong Kong, Singapore, and South Korea also saw losses of at least 60% in dollar terms. Singapore and Taiwan were relatively unscathed. The Four Asian Tigers recovered from the 1997 crisis faster than other countries due to various economic advantages including their high savings rate (except South Korea) and their openness to trade. The export-oriented tiger economies, which benefited from American consumption, were hit hard by

4480-430: The term "balanced growth" refers to the goal of equal growth of both aggregate human capabilities and physical assets that produce goods and services. The assumption that labor or workforces could be easily modelled in aggregate began to be challenged in 1950s when the tertiary sector , which demanded creativity, begun to produce more than the secondary sector was producing at the time in the most developed countries in

4550-572: The term in the modern neoclassical economic literature dates back to Jacob Mincer 's article "Investment in Human Capital and Personal Income Distribution" in the Journal of Political Economy in 1958. Then Theodore Schultz also contributed to the development of the subject matter. The best-known application of the idea of "human capital" in economics is that of Mincer and Gary Becker . Becker's book entitled Human Capital , published in 1964, became

4620-463: The title Asian Tigers . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Asian_Tigers&oldid=1189797638 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Four Asian Tigers By

4690-486: The traded-goods sector. The governments of Singapore, South Korea and Taiwan also worked to promote specific exporting industries, which were termed as an export push strategy. All these policies helped these four nations to achieve a growth averaging 7.5% each year for three decades and as such they achieved developed country status. Dani Rodrik, economist at the John F. Kennedy School of Government at Harvard University, has in

4760-426: The world. Accordingly, much more attention was paid to factors that led to success versus failure where human management was concerned. The role of leadership , talent , even celebrity was explored. Today, most theories attempt to break down human capital into one or more components for analysis. Most commonly, Emotional capital is the set of resources (the personal and social emotional competencies) that

4830-642: Was generally successful and helped develop the countries into more advanced and high-income industrialized developed countries . For example, all four countries have become global education centers with Singapore, Taiwan, South Korea and Hong Kong high school students scoring well on math and science exams such as the PISA exam and with Taiwanese students winning several medals in International Olympiads. In relation to higher-level education, there are many prestigious colleges as in most developed countries. In

4900-710: Was worth 363.03 billion, 361.1 billion, 1,619.42 billion and 589.39 billion US dollars respectively in 2018, which represented 0.428%, 0.426%, 1.911% and 0.696% of the world economy. Together, their combined economy surpassed the United Kingdom's GDP of 3.34% of the world's economy some time in the mid-2010s. In 2021, each of the Four Asian Tigers' GDP Per capita (nominal) exceeds $ 30,000 according to IMF 's estimate. The four governments focused on investing heavily in their infrastructure as well as education to benefit their country through skilled workers and higher level jobs such as engineers and doctors. The policy

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