“UNLOCKING ECONOMIC POTENTIALS: THE ROLES OF TECHNOLOGICAL PROGRESS, PHYSICAL CAPITAL AND HUMAN CAPITAL IN LABOUR PRODUCTIVITY”

Abstract

This article discloses the integral relationship between technological progress, human capital, and physical capital in improving labour productivity and driving economic growth, particularly, in developing countries. By combining the existing literature on the topic as well as empirical data, we demonstrate how advancement in technology can streamline processes and increase efficiency, thereby increasing output per worker. Furthermore, we go through the significant role of human capital defined as education, skills, and competencies acquired by employees in maximizing the benefits of technological innovations and improving productivity. We also consider the importance of physical capital investment such as infrastructure and machinery, in creating a conductive environment for increased labor productivity. Our findings suggest that a strategic integration of these three elements not only leads to significant improvements in productivity but also fosters sustainable economic growth and higher GDP in developing nations.