Human capital on economic growth (Article) - Group A

 

GROUP A

Human Capital

Human capital refers to the skills and knowledge possessed by an individual. It is viewed in terms of their value and cost to the business organization. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a substantial impact on individual earnings.

Human capital and economic growth

Human capital influences economic growth and it can generate an economy through knowledge and abilities. Nations require adequate human capital who are educated and qualified as educators and other specialists. In other words, we need great human capital to create other human capital like doctors, engineers, professors, etc., which will later become a human asset and contribute to the economy of the country.

Human capital in the economy manages the central portion of the national wealth. Hence, all researchers consider that human capital is the most important resource of the community, which is more powerful than nature or wealth. In most countries, human capital determines the rate of development, economic, technological, and scientific progress.

Impacts of human capital on economic growth

(i) Inventions, innovations, and technological improvement

(ii) Higher productivity of physical capital

(iii) Raises production

(iv) High rate of participation and equality