Conical Correlation Between Human Capital and Socio – Economic Indices
This research reveals the association between human capital indices (mortality rate of children under 5 years, adult survival rate, Harmonized Test Scores (HTS) and expected years of school) and socio – economic indices (Life expectancy at birth, GDP per capita, and government expenditure on education). Using the canonical correlation analysis CCA, that assessing the association between the human capital indices as dependent set and socio-economic indices as predictor set. Data were from the World Bank (2018) for 108 countries. The Wilks's criteria show that the full model for all functions statistically significant; the full model explain 97.6% of the variance between the dependent and predictor sets. The first canonical correlation explicit a higher positive significant correlation 0.98 (P,0.000) between human capital and socio – economic indices. 74% of the human capital index variability is construed by the first canonical variate of socio-economic indices and 47% of the socio-economic indices' variability is construed by the first canonical variate of human capital indices in the model. Life expectancies at birth has the biggest contribution to the first socio – economic canonical variate among other predictors. The expected years of school and probability of survival to age 5 (8) contribute more than the adult survival rate and Harmonized Test Scores (HTS) to human capital.
Keywords - Adult Survival Rate, Canonical Correlation Analysis, Structure Coefficient, Harmonized Test Scores, Human Capital, Life Expectancy at Birth, Mortality Rate.