2014•Periodica Polytechnica Social and Management SciencesOpen access

Investment in the Human Capital as the Source of Economic Growth

Alžběta Kucharčíková

Abstract

The aim of this text is to show the necessity of investment in human capital. The article discusses the importance of human capital as a source of economic growth and its role for the achievement of extensive and intensive economic growth. The article shortly describes the problem of costs and benefits of investment in human capital. The text answers the questions who and why ought to invest, which are determinants of investment in human capital and how the human capital contributes to the economic growth and improving welfare of the population.

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Key concepts: Human capital, Investment (military), Economics, Capital intensity, Capital deepening, Physical capital, Financial capital, Capital accumulation