Trace the relationship between human capital and economic growth.

Relationship between human capital and economic growth : Human capital refers to the stock of skill, ability, expertise, education and knowledge in a nation at a point of time and Economic Growth means the continuous increase in real national income of a country. Human capital formation raises the process of economic growth and economic growth raises the process of human capital formation. Thus there is cause and effect relationship between human capital and economic growth. It has been shown below :

Rise in human capital is the cause of more economic growth : Rise in human capital brings positive changes in outlook and attitudes in human being. It improves quality of life and raises life expectancy. Modern attitude and outlook, better quality of life and higher life expectancy makes workers more efficient and productive resulting into the increase in real national income of a country (i.e. Economic Growth).