Why Is Human Capital a Driver for Economic Growth?

Liparã Daniel ()
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Liparã Daniel: „Alexandru Ioan Cuza” University of Iaºi, Doctoral School of Economics

Ovidius University Annals, Economic Sciences Series, 2011, vol. XI, issue 1, 1160-1165

Abstract: This paper aims to explain if there is a link between human capital accumulation and/or formation and economic growth. In a knowledge-based economy, investing in human capital is a representative of a country’s economic power. Migration of brains or so called “brain drain” to developed areas is a result of human capital accumulation. This type of investment means an increase in labor productivity. Basically, with the same effort, individuals will achieve better results because of their superior training. Education is the base of human capital formation and the education level is directly proportional with the income level. Together with technological progress, they lead to economic growth. Human capital is an important factor that expresses the productivity of an individual and of a society too, thus having a crucial role in a knowledge-based economy.

Keywords: human capital; economic growth; labor productivity; education (search for similar items in EconPapers)
JEL-codes: J24 O47 P46 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:11:y:2011:i:1:p:1160-1165

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