Role of human capital in economic development: problem statement

Abstract

Intellectual and human capital is regarded by modern science as renewable sources of productivity. Economic growth is an increase in an economy’s ability, compared to past periods, to produce goods and services. Human capital is directly related to economic growth. The relationship can be measured by how much is invested into people’s educations. Human capital should be a key driver for the portfolio needs of an investor and should be hedged by financial capital.