ABSTRACT
The potential importance of human resource development can be illustrated by some estimates which Schultz has made of the amount of capital formation represented by education. In the particular case of education, Denison based his estimates on data relating to the differential earnings associated with the educational levels of individuals, and on the amount of education people in the labour force possessed at different dates. While there are many problems which surround attempts to measure the capital formation represented by education and which consequently demand that estimates such as Schultz's be interpreted with care, the concept is clearly one of relevance to an analysis of the growth process. In combination, however, the heightened awareness of 'externalities', together with the development of Keynesian 'disequilibrium' economics, added substantial economic weight to the non-economic pressures which were causing governments to take a specific interest in the question of economic growth.
