Human Development, Productivity, and Economic Growth

We analyse the relationship between human development, productivity and economic growth. We found empirical evidence that supports the hypothesis that there is a direct causality relationship between human development and total factor productivity, a direct relationship of productivity growth on economic growth for the Peruvian economy in the period 1990-2019, and a cointegration relationship in the long-term. Our approach recommends human development and productivity policies in a free market economy, investments that expand innovation capabilities, productive and technological diversification for the development of the internal market, and the strengthening of social and institutional capital, creating an environment with a better quality of life to increase productivity and achieve sustainable and inclusive economic growth in a capitalist and democratic economy.