INTERPLAY OF HUMAN CAPITAL AND SUSTAINABLE DEVELOPMENT: A NETWORK APPROACH
DOI:
https://doi.org/10.35774/jee2026.01.044Keywords:
Bayesian Network Analysis, human capital, Social Progress Index (SPI), sustainable development.Abstract
This paper reveals complex interdependencies between human capital and sustainable development using Bayesian Network Analysis (BNA). Human capital is proxied through the Social Progress Index (SPI) and its components – Basic Human Needs, Foundations of Wellbeing, and Opportunity – alongside the Human Capital Index (HCI) and Sustainable Development Goals metrics. The analysis identifies vital hubs, such as health (SDG 3), sustainable cities (SDG 11), and economic growth (SDG 8), which act as pivotal drivers of systemic progress. Additionally, critical trade-offs, such as the negative association between resource consumption (SDG 12) and human well-being, are uncovered, highlighting the complexity of balancing competing priorities. The findings emphasize the importance of focusing on health, education, and inclusivity to optimize synergies and mitigate trade-offs between human capital and sustainability outcomes. By employing Bayesian networks, this study provides a data-driven framework for understanding causal pathways and offers actionable insights for policymakers. These results advance the discourse on integrating human capital investments with sustainable development strategies, addressing gaps in prior linear and correlation-based analyses.
JEL: O15, Q01, C11.
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Received: December 3, 2025.
Reviewed: March 12, 2026.
Accepted: March 20, 2026.
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