Explain the role of human capital formation in economic growth.

Asked by Last Modified  

2 Answers

Learn Economics +1

Follow 3
Answer

Please enter your answer

14 years being a Private Tutor as an @Educator-Trainer-Motivator-

Human capital is believed to be positively related to economic growth though, it is difficult to establish a relation of cause and effect from the growth of human capital to economic growth, but we can see that human capital formation is related to economic growth in the following manner: (i) Higher...
read more
Human capital is believed to be positively related to economic growth though, it is difficult to establish a relation of cause and effect from the growth of human capital to economic growth, but we can see that human capital formation is related to economic growth in the following manner: (i) Higher Productivity’of Physical Capital Human capital increases productivity of physical capital as specialised and skilled workers can handle machines or techniques better than the unskilled workers, “increased productivity and hence production which leads to economic growth. (ii) Innovative Skills Human capital facilitates innovation of new methods and techniques of production and this increase the rate of economic growth in the form of increase in GDP. (iii) Higher Rate of Participation and Equality Human capital formation leads to a higher employment rate. With increase in employment, the productivity rises. Also, increase in employment opportunities also increases the level of income and this helps in reducing inequalities of wealth. Both, increase in employment rate and decrease in income inequalities are pointers of economic development. read less
Comments

English Tuition in Ernakulam

Human capital formation is essential to the growth of the economy. Human capital formation increases the innovative capacity of the citizen, and as much of the modern economy and market structure is based on innovation this tendency in the citizen would fuel economic growth. The individual also tends...
read more
Human capital formation is essential to the growth of the economy. Human capital formation increases the innovative capacity of the citizen, and as much of the modern economy and market structure is based on innovation this tendency in the citizen would fuel economic growth. The individual also tends to participate more in the economy as his knowledge base and health is widely enhanced. Human capital formation also involves advanced knowledge in the efficient use of technolgy, this would ensure that there is no waste (money as well as time based), thereby fuelling economic growth. Human capital formation and a knowledge based, healthy society has been proved to create exponential results in economic growth far exceeding the investments required to form such a capital base. read less
Comments

Related Questions

Is going to coaching necessary for chemistry class 11 CBSE?
Better is that u can use different reference text book and creat own notes which are use full for your study.
Profile Photo
Pradeep
0 0
View Comments5
Which documents are required to be submitted to the bank for taking a house loan?
Identity Proof: Passport/ Driving License/ Voter ID/ PAN Address Proof: License/ Registered Rent Agreement/ Electricity Bill (up to 3 months old), Passport Employment Appointment Letter: Required if the...
Profile Photo
Pavithra
0 0
View Comments9
Which are governments exam or job for women B.com and MBA F&M between 31 to 35 age?
Madam, you can better prepare for state PCS exams. Thank you!
Profile Photo
Priya
0 0
View Comments9
Will coaching for the IIT-JEE in Class 11 affect the Class 12 boards?
Yes it affect you need to have proper preparation in early stage to cover up the course
Profile Photo
Harshitha
I have just entered class 11 and want to prepare for IIT-JEE. How do I manage between school and coaching?
Focus on JEE classes as most of the students do. You can cover your class course easily after these classes before exams.
Profile Photo
Sweetu
0 0
View Comments6

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons


Multiplication Tricks
1) Multiplication with 11 23 X 11= 253 2___3 253 (2+3=5) 623 X 11= 6853 6_____3 6____53 (2+3= 5) 6853 (6+2= 8) You can see multiplication can be done quickly by starting with the first and last...
P

Priya

0 0
View Comments0



Recommended Articles

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

With the current trend of the world going digital, electronic renaissance is a new movement that is welcomed by the new generation as it helps makes the lives of millions of people easier and convenient. Along with this rapidly changing movement and gaining popularity of Internet, e-Learning is a new tool that emerging...

Read full article >

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you