THE HUMAN CAPITAL AND ECONOMIC DEVELOPMENT: LITERATURE REVIEW

The human capital constitutes an important factor for the development of the nation’s economy. Recently, Barro, Mankiw and Sala-I-Martin (1995) place the human capital as the vital variable which explains the economic evolution. Hence, the effects of human capital on the economic development became a significant topic in the empirical literature. In this way, the idea of this study is to give a perspective of the theory and the basic approaches of human capital. Then, this paper sets out to review the literature about the relationship between human capital and economic development.