On the impact of human and physical capital on economic growth in BRICS and ASEAN countries

Abstract

Subject. The article addresses the impact of human and physical capital on economic growth in BRICS and ASEAN countries. Objectives. The aims of the study include to show that countries with developing economic potential are gradually moving towards a period of economic slowdown, to determine the role of human and physical capital in economic growth, their features and differences. Methods. The study employs the content analysis of available sources, comparative analysis, and statistical data examination. Results. The assessment of the impact of human and physical capital in BRICS and ASEAN countries with developing economic potential shows that economic growth is more sensitive to changes in human capital than to physical capital. There are differences in the impact of human capital on economic growth in countries due to differences in the level of average income per capita, insufficiently effective use of human capital. Conclusions. It is crucial to increase investments in human capital development in BRICS and ASEAN countries. Moreover, the goals of investment in human capital and the effective level of investment should be clearly defined. In order to increase the efficiency of the use of human capital, it is necessary to develop policies aimed at increasing the labor force participation and employment in the economy.