What is the relationship between human capital and economic growth?

Human capital and economic growth are related to the fact that strong human capital is a facilitator of rapid economic development. The amount of knowledge and skills within people is referred to as human capital and can be obtained by formal or informal education and training. Another connection between human capital and economic growth is the fact that capital investment in the health and well -being of people is also reflected in the development of the economy.

The measurement of the relationship between human capital and economic growth is based on the level of investment from people. This can be compared to other forms of investments that are expected to bring good dividends. In this case, an investment in the form of education that brings dividends in the form of increased skills and knowledge that can be applied to the development of the economy. One of the differences between human capital and other forms of business capital is that human capital is separated from a person.

The simple fact that human capital cannot be separated from humans creates a link between human capital and economic growth. Most governments provide incentives to companies that provide their employees with extensive training because they realize that the knowledge that these individuals receive will remain with them, even if they leave this particular company. This knowledge can be used in other areas that help develop the economy by employees working for the government to help develop their industries or even establishing their own businesses. For example, an individual who works for computer software development can get a lot of training during work. The employee can later leave a computer company and use his training and skills to further develop the economy by coming up with unique concepts that will be useful.

Human Capital and Economic Development are also associated with investment in people's health because for economic development of the NationalDA is the necessary health people. Investments in human capital health include factors such as the development of the medical system, good hospital and easy access to medical facilities. An example of how lack of investment in human health can affect economic development can be observed in a situation where there is a high rate of mortality between the general population due to lack of adequate medical facilities.