Locating Critical Components of Regional Human Capital

Enormous attention has been devoted recently to the contributions of human capital in the strategic and competitive success of different regions. These advances by macroeconomists and trade theorists have important implications for understanding the influence of economic development programs in a rural environment. Drawing upon this research we argue that human capital concepts may offer a more effective basis for assessment of strategic resource needs and use within a rural setting. An approach using direct elicitation methods is outlined for developing human capital measures. One significant advantage of a human capital approach is the potential for creating indicators that bridge the interests of economic development and environmental programs.