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Human Capital as a Catalyst for Economic Diversification in Trinidad and Tobago

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Development, Political, and Economic Difficulties in the Caribbean

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Abstract

This chapter focuses on human capital accumulation in Trinidad and Tobago, its commensurate effect on economic growth, and the importance of human capital in the process of economic diversification efforts. The focus on investment in human capital is based on the fact that the school system is hierarchical in nature and that the return on investment, while differential, is higher at the secondary and tertiary levels and more directly linked to labor productivity than that of primary school given Trinidad and Tobago’s economic structure. This chapter provides a theoretical and empirical case for the development of human capital as a key catalyst in the process of economic diversification.

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Notes

  1. 1.

    The term “knowledge-based economy” results from a fuller recognition of the role of knowledge and technology in economic growth. Knowledge, as embodied in human beings (as “human capital”) and in technology, has always been central to economic development. But only over the last few years has its relative importance been recognized, just as that importance is growing. See “The Knowledge Based Economy”. Available at: https://www.oecd.org/sti/sci-tech/1913021.pdf.

  2. 2.

    Produced capital refers to physical assets that are generated by applying human productive activities to natural capital and that are used to provide a flow of goods or services, whether in the business sector, in homes or communities, or in the public purpose sector of governments and non-profits. See “Five Kinds of Capital: Useful Concepts for Sustainable Development”. Available at: http://www.ase.tufts.edu/gdae/publications/working_papers/03-07sustainabledevelopment.PDF.

  3. 3.

    Source: World Development Indicators, World Bank.

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Author information

Authors and Affiliations

  1. Department of Economics, The University of the West Indies, St. Augustine, Trinidad and Tobago

    Daren A. Conrad

  2. HEU, Centre for Health Economics, The University of the West Indies, St. Augustine, Trinidad and Tobago

    Asif Cassim

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  1. Daren A. Conrad
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  2. Asif Cassim
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Correspondence to Daren A. Conrad .

Editor information

Editors and Affiliations

  1. Faculty of Social Sciences, The University of the West Indies, St. Augustine, Trinidad and Tobago

    Ann Marie Bissessar

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Conrad, D.A., Cassim, A. (2019). Human Capital as a Catalyst for Economic Diversification in Trinidad and Tobago. In: Bissessar, A. (eds) Development, Political, and Economic Difficulties in the Caribbean. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-02994-4_4

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