INFLUENCE OF HUMAN CAPITAL DEVELOPMENT ON COMPETITIVENESS OF THE EU ECONOMY.

Impact of human capital development on competitive ability of the EU economy has been researched in this paper. The calculation and estimation of correlative dependence between the competitive ability of the EU economy and major factors of human development were made. The Spearman's rank correlation calculation method was used to confirm correlation of the country's competitive ability and human development interconnection. This method provides the calculation of Spearman's rank correlation coefficient which is a nonparametric method and being used for statistic analysis of connections between different phenomena. The process of calculations and estimations of country's competitive ability and human capital correlation was displayed in three units. The first unit is dedicated to proving the dependence of the Human Development Index and the Global Competitiveness Index, as well as the level of both indices impact analysis. The second unit is aimed to discover dependence of factors, which compose the human capital, from the level of global competitive ability. The third unit focuses on defining and estimating of interdependence between the Global Competitiveness Index and the Global Innovation Index designed by INSEAD Research Centre (France). The dependence between country's human capital development and economic development together with national competitive ability has been proven. Major human capital development factors that influence the level of the EU competitive ability were found. [ABSTRACT FROM AUTHOR]