Role of Human Capital in Economic Development

5407 Words Nov 12th, 2011 22 Pages
CHAPTER ONE INTRODUCTION
a) BACKGROUND
Kenya is one of the less Developed countries that are endowed with relatively good levels of resources and labor. However, there are still a lot to be done to tap those resources into viable productivity and industrialization levels. One way of achieving this is by maximizing the use of both physical and human capital. In or case we shall consider human capital. Human capital, according to Adam Smith refers to the acquired and useful abilities of all the inhabitants or members of the society. The acquisition of such talents by the maintenance of the acquirer, during his education, study or apprenticeship, always costs a real expense, which is a capital fixed and realized, as it were in his
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This paper therefore seeks to determine if, indeed, human capital has been the factor that has caused a rise in economic growth and development in east Africa. c) RESEARCH QUESTIONS
 What is the role of human capital in economic development in east African countries?
 Is healthy human capital and other non economic inputs are part of the determinants of economic growth in east African countries?

d) OBJECTIVES OF THE STUDY
 To find out the role of human capital in economic development in east African countries.
 To determine whether healthy human capital and other non economic inputs are part of the determinants of economic growth in east African countries.

e) SIGNIFICANCE OF THE STUDY
This study is seeking to establish the relationship between human capital and economic growth and development in east Africa. By so doing, we will be able to know with certainty whether human capital is actually one of the reasons for economic growth in east Africa, in which case the findings will be used to establish the right proportion of human capital needed to mix with other economic inputs so as to facilitate sustainable economic development in the region. It also gives an indication of the possible way to rate human capital against other
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