The Accumulation of Human Capital as a Factor of Production

Abstract

The previous chapter discussed and compared the neoclassical and endogenous growth models, including exogenous and endogenous factors of growth, in order to provide a theoretical background to the thesis. In this chapter, the accumulation of human capital and its transformation into economic growth will be discussed. The aim of this chapter is to help fill a void in the literature by articulating a transformational model of human capital and economic growth. The complementarity and substitutability between human and physical capital will also be addressed, together with its effect on technological change. Finally, educational policies for the formation of human capital to enhance economic growth will also be discussed.