explain how human capital and economic growth impact eachother?

Human capital and economic growth goes hand in hand. Human capital formation accelerates economic growth whereas economic growth in turn facilitates human capital formation. The interrelationship between economic growth and human capital formation can be explained with the help of below mentioned points.

1. Increase in the productivity of physical capital: Physical capital refers to the stock of produced means of production .It consists of machines, production plants, tools and equipments. The skilled workers handle the productive assets in such a manner that these not only enhance their productivity and but also lead to an efficient utilization of the physical capital. When the productivity increases, the pace of growth is automatically accelerated.

2. 2. Innovation of skills: An educated person is more productive and skillful. He has the potential to develop new skills and innovate new techniques that can be more efficient and productive. Greater the number of skilled and trained personnel, greater will be probabilities of innovations.

3. High production rate and equality: Human capital endowed with higher technical skills and innovating power is more productive and efficient. This increase the participation of more people in the process of economic growth and development. Higher the participation rate, higher is the degree of social and economic equality across the country.

Thus, we can conclude that human capital and economic growth goes hand in hand. Human capital formation accelerates the economic growth whereas economic growth also facilitates human capital formation.

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Human capital and economic growth goes hand in hand. Human capital formation accelerates economic growth whereas economic growth in turn facilitates human capital formation. The interrelationship between economic growth and human capital formation can be explained with the help of below mentioned points.

  1. Increase in the productivity of physical capital: Physical capital refers to the stock of produced means of production .It consists of machines, production plants, tools and equipments. The skilled workers handle the productive assets in such a manner that these not only enhance their productivity and but also lead to an efficient utilization of the physical capital. When the productivity increases, the pace of growth is automatically accelerated.
  2. Innovation of skills: An educated person is more productive and skillful. He has the potential to develop new skills and innovate new techniques that can be more efficient and productive. Greater the number of skilled and trained personnel, greater will be probabilities of innovations.
  3. High production rate and equality: Human capital endowed with higher technical skills and innovating power is more productive and efficient. This increase the participation of more people in the process of economic growth and development. Higher the participation rate, higher is the degree of social and economic equality across the country.

Thus, we can conclude that human capital and economic growth goes hand in hand. Human capital formation accelerates the economic growth whereas economic growth also facilitates human capital formation.

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i dont know
 
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Human capital and economic growth both widely related to each other the real power of an economy only can be measured by its human capital. Human capital is able to change the economic growth by the doing the work and it may able to increase the economic growth of the country. Human capital is the most important component of an economy, because if any economy is having a good, skilled, physically and mentally fit, intelligent human capital then that economy get its advantage.
for example-if we talk about the India it is the fastest growing economy in the world, here nothing responsible more than its human capital for its economic growth.
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