What is the Difference between Human Capital Formation and Physical Capital Formation?
Physical Capital Formation
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Human capital Formation
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It refers to additional investments made in the form of sophisticated tools and Types of machinery.
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Human capital formation implies additions to the skills, knowledge of the individuals.
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It leads to all around develepmont
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It results in mechanization of economy as whole
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It directly affects production process
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It indirectly affects production process
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Physical capital need not necessarily imply human capital
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Its formation can lead toward improvement in physical capital.
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