The Role of Human Capital in Agriculture Development in Canada

Abstract

This study examines the impact of the direction of the relationship of education and health development in Canada on agricultural development efforts in Canada. This study using vectors which are generally used in a-theory research so that human capital theory is used as a determinant of key factors, not as the basis for econometric equations. The results of the vectoring carried out in this study can be described through the estimation of the IRF (impulse response function) estimation. The next step is to forecast the influence of each variable in the form of a forecasting graph so that it can be seen clearly the combination of the direction of the relationship or the influence of each variable. We found that Canadian agriculture is increasingly productive and investment in education and health continues to increase. Of course, this is a good sign. The graph of employment in agriculture has increased up to the sixth period. However, it continues to decline. This indicates that there is a decrease in the number of people working in the agricultural sector. This could be due to an increase in agricultural technology so that the number of workers needed is decreasing or a sign of a large number of job options in Canada outside the agricultural sector.