Human Capital and Economic Growth: Evidence from Macau Gaming Industry

The study aims to investigate the relationship between human capital in Macau gaming industry and economic growth over the period from the third quarter of 2001 to the third quarter of 2017. The findings of the study show that there exists a long-run co-integration relationship among GDP, education attainment at all levels, average schooling years, education Gini coefficient and total wages of employees. Average schooling years have negative effect on economic growth, whilst other variables have positive effect on economic growth. The study concludes that human capital of casino industry acts as a key determinant of economic growth in Macau. In recent years, violent competitions have emerged from Asian countries, and they have continuously provided new electronic gaming products. It is acceptable that employees with higher education attainment have abilities to learn new skills and knowledge and then create new products. We would suggest that the government has to pay more attention to investment in human capital to maintain sustainable economic growth.