Benazir Bhutto Shaheed University

Lyari

Student Name: Abdul Wahab

REG no: 512bba/18-s/9
Semester 5th
Section: A
Batch: 9th

Assignment 01
Article Summary
Human Capital is a key factor of economic growth in crisis

Instructor: Abdul Sammad Sheikh

 Human Capital is a key factor of economic growth
in crisis

Executive Summary
This article indicate about Human capital, which is a key factor of economic
growth in crises. There is economic connection between entrepreneurial structures
which are broken and it lead to failure and slow down of rates of economic growth
in crises
In recent Russia became most unfavorable form as financial failure of the market
which are accompanied by unfavorable situation which constitute the foundation
of Russia economy, which determine financial load on economic.
After the postindustrial economic one of the most important production factor is
human capital which is flexible source of business and boost economy. Human
capital play vital role in economic growth to immovable economic condition but it
role in crises is not studied well.
There are some literature over review of the topic of the research show that there
is no comprehensive idea of interconnection between these aspects of
development which determine necessity for complex study which is performed in
this article.
There are some data was collocated of Russian economic before and after 2008
crises. Before 2008 crises Russian economy was developing in a stable way
economic growth rate was 8% per year. After crises Russian economic growth rate
and innovational activities reduce.
In 2009 economy stagnated due to lack of stimuli for growth and it cause by
innovational activities. In 2008 its enterprises started implementing innovations
into their activity again and GDP lead to its précises level and rate of economic
growth increase in 2011-14.
Supposed to note that realization of innovational activities of enterprises
especially in crises required some possession of significant potential in other way
it is implement innovation into production its necessary to have access to leading
production technologies.
Under the condition of crises, profitability of enterprises and the volume of
accessible financial resources were reduced. It required development of innovation
before crises and it performed by scientific research.
Innovation into production activities of entrepreneurial structures performed by
human capital as people develop and control production process, that’s why it is
human capital not material and financial resources, it is a source of innovation
potential of entrepreneurial structure and a key factors of economic growth in
crises.
It is proved by the example of Russia crises to overcoming of crisis situation in
economy is help by innovation activities which is provided by human capital and
it is confirmed by proven hypothesis human capital is a key factor role in
economic growth in the situation of crises.
It should be confirmed that human structure is the most complex resource due to
the high flexibility and individuality of every structural element. Unlike financial
material and other types of capital, human capital is dynamic, which determines
the presence of an irrational component in it. That is why the success of human
capital management needs to consider the great diversity of individual
perspectives and psychological factors.
A certain range of research results performed is to be analyzed by the example of
modern Russia and the recent financial crisis that began in 2008. For this reason,
the country's research strategy, depending on the stage of the economic cycle, is
an approach to further research.