Human Resource, Capital Resources and GDP

Human Resources

• People having the skill, knowledge, education, and training to be productive workers that help produce goods and services.

Gross Domestic Product

• the total value of all goods and services produced by a country in a single year

Literacy Rate

The number of people 15 years and older who can read and write in a country.

GD

P Pe

r Cap

ita in

$10

00

Investment in human resources % of GDP

Nigeria

South Africa

How does investment in human resources affect a country’s literacy rate?THE GREATER THE PERCENTAGE A COUNTRY INVESTS IN HUMAN RESOURCES (SCHOOLS AND TRAINING) THE HIGHER THE LITERACY RATE, WHICH EQUALS A MORE PRODUCTIVE WORKFORCE.

10 20 30 40 50 60 70 80 90

South Africa

Nigeria

Investment in capital resources % of GDP

If you invest heavily in capital resources, does that mean

your GDP per capita is high?

No, EVEN THOUGH NIGERIA INVEST MORE MONEY INTO CAPITAL RESOURCES THEY STILL HAVE A LOWER GDP PER CAPITA COMPARED TO SOUTH AFRICA

What other factors might be important?• THE POPULATION OF NIGERIA IS MUCH

HIGHER THAN SOUTH AFRICA• SOUTH AFRICA INVESTS MORE MONEY

INTO HUMAN RESOURCES• NIGERIA HAS HAD POLITICAL

CORRUPTION THAT HURTS THE ECONOMY

Are minerals such as diamonds, gold, uranium and oil distributed evenly?

no

What effect do these minerals have on a county’s GDP?

COUNTRIES THAT HAVE MINERAL RESOURCES AND OTHER RESOURCES LIKE OIL AND GAS ARE MORE LIKELY TO HAVE A HIGHER GDP.

Is there a link between the level of entrepreneurship and GDP per capita and per capita income?

YES THERE IS A LINK.NIGERIA HAS LIMITED ENTREPRENEURSHIP WHICH HELPS EXPLAIN WHY THEIR PER CAPITA INCOME IS ONLY $930 AND THEIR GDP PER CAPITA IS ONLY $2,100.WHEREAS, SOUTH AFRICA’S HAS A HIGHER PER CAPITA INCOME AND GDP PER CAPITA BECAUSE IT IS CLOSER TO A MARKET ECONOMY AND THERE IS MODERATE ENTREPRENEURSHIP.