Abstract:

This article focuses on the role of human capital in the local economic development. According to OECD (2001), we define the concept of human capital such as knowledge, skills, competencies and other qualities embodied in individuals that facilitate the creation of personal well-being and health, social welfare and economic prosperity. Local economic development can be described as shaping the physical, human, social and institutional resources and the use of the inherent comparative advantages to creating economic base operating permanently as a reasonable degree of independence. (Blakely, 2010) This article will focus on the evaluation of the relationship between human capital and the level of economic success of the municipalities. It will consider whether it depends on who manages the municipality and what its strategy is and whether it is possible to find some common characteristics of successful and unsuccessful municipalities.