Page 14 - Economy_Efficiency and Competitiveness2

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Chapter 4 Human resources as a measure

of international competitiveness

4.1 Human resources in international competitiveness

Human resources contribute to national income and are one of its basic components. The quality,
efficiency and effectiveness of employees is important here. Indicators such as the rate of economic
activity and employment rate play an important role here. Investing in human capital is a prerequisite for
long-term economic growth and also affects the international competitiveness of the economy. There is
a link between the quality of human capital and labour productivity. Transnational differences in the level
of education explain an important part of observed differences in productivity.

The role of science and knowledge in today’s economy has significantly increased and makes the most
important factor influencing the country’s competitiveness is an investment in human capital. Human
capital can also be used as a driving force of economic development due to rapid technological changes
and globalization processes. All countries that want to maintain economic growth, prosperity and be
competitive in the long term must pay particular attention to issues such as the accumulation of human
capital.

4.2 Human capital

In a dynamically developing economy, human capital is becoming the basic strategic resource of the
organization and the foundation of sustainable competitive advantage. When choosing the place of
a business location, the entrepreneur should pay attention to the value of the offered human potential.
He needs at least two types of employees: