Question

What role does human capital play in growth and why is it important?

Answer 1

Human capital is a very important factor that affects economic growth. Human capital can be referred to as knowledge, habits, skills, intelligence etc which has an economic value. Human capital will lead to economic growth and development. Human capital can increase the productivity of workers and there by goods and produced in the economy can be increased. It helps in technological advancement which also lead too economic growth. If a country is having more of educated, trained, intelligent and skilled people, then it means that the country is having more human capital. They are an asset to that country. They can bring about new technologies, innovations, ideas etc to increase the productivity economic progress.