Human Capital And Productivity

Economist Theodore Schultz invented the term human capital in the 1960s to reflect the value of human capabilities. He believes that human capital is similar to other types of capital, and we believe investment in human capital will enable us to achieve higher yields. The concept of human capital recognizes that all labor is not equal and that investment can improve the quality of employees.

Human capital plays an important role in economic growth and development. Because people occupy the center of production, distribution, and consumption chain. From a macroeconomic point of view, the accumulation of human capital productivity has promoted technological innovation, raised the return on capital and made agricultural growth more sustainable. The productive workforce of agriculture in Nigeria is aging and needs to be replaced by a young and educated farmer that brings innovation and modernity to the practice of agriculture. Education is essential as a provider of trained human resources and as a prerequisite for achieving goals as entrepreneurs. Agribusiness must be attractive, profitable and sustainable to promote economic growth. These important attributes can be achieved through scientific research to develop high quality inputs, improve agricultural practices and develop superior management techniques.

Economic growth factors also changed greatly. Knowledge and human capital are becoming the deciding factor of production, accounting for 70% of income growth. In addition, information assets (including human capital) are factors that define the performance of stocks in the stock market. The same asset was the foundation of mainly unicorn companies, and the market value quickly reached 1 billion dollars. Whether or not more and more companies succeed today depends mainly on workers, the ability to master and acquire new skills and abilities, efficiency, diligence, discipline, creativity, and teamwork.