Direct and Indirect Effects of Human Capital on World Development, 1960-2004

We analyze the main positive effects of human capital on economic development, having into account direct and indirect relationships between the educational level of population and real Gdp per inhabitant through the production function, demographic evolution, industrial development, foreign trade and other effects. We analyze the effects of the educational level of population in America, Europe, Eurasia, Africa and Asia-Pacific during the period 1960-2004 and present the estimation of several econometric models based on international panels of data which show the significant role of education. Authors recommend to foster international cooperation in order to help less developed countries to increase the speed of increase of educational level as the main source for development.