Advances in Management and Applied Economics

Does Human Capital Cause Economic Growth?

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  • Abstract

    It is the 21st century; every state desires to develop itself more rapidly. After the Second World War in 1945, industrial, individual, and communication revolutions transformed the world into a global village. The internet, cyber space, and e-mail have compressed the world into a smaller region. Every sane individual can easily have an access to all types of changes occurring in the world. Thanks to the communication revolution, nothing is hidden from the eyes of human beings. In this regard, every state in the world is looking for its specific role in the world. In this regard, every state is the looking for its specific role in the world. The economy is not only the sole source of development in a state but these are the men behind all types of amelioration. The knowledge, skills and hardworking of the individuals sustain the economy of a state. Traditionally only the land labour and physical resources were considered important means of production. Undoubtedly, man and material resources are unavoidably necessary for the economic growth of a country. In this century, without manpower all other resources are futile. This paper is based on the thesis that human capital consists of manpower, skill, and knowledge, is sine qua non for economic growth. The economics of education is the perfect investment is the major theme of this paper.