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Wednesday 27 September 2017

Difference between physical capital formation and human capital formation

What is the Difference between Human Capital Formation and Physical Capital Formation?

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

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