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ABSTRACT. The objective of this paper is to emphasize the importance of the role played by social capital in human capital formation and the importance of human capital to economic development. Throughout this paper, we demonstrate the value and importance of the role of human capital externalities in economic development and the social returns to accumulation of human capital. We hope this paper makes a significant contribution to evaluating the role of human capital in promoting technological progress and the contribution of human capital to the process of economic growth. This paper seeks to fill a gap in the current literature by examining the dynamic consequences of human capital formation and the role of human capital in the process of economic growth. pp. 250–255
JEL: J24, O16, O47

Keywords: human capital formation, economic development, progress

NICOLAE TUDORESCU
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CONSTANTIN ZAHARIA
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GEORGE CRISTINEL ZAHARIA
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IOANA ZAHARIA
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University of Craiova

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