Published September 2025, Pg. 55-60

Section: Economy, management and law

UOT: 662.338

DOI: 10.37474/0365-8554/2025-09-55-60

Theoretical foundations and characteristics of investment in human capital

G.А. Sаfаrov Dr. in Ec. Sc. - Azerbaijan State Oil and Industry University

S.S. Sadigova PhD in Economics - Azerbaijan State Oil and Industry University

Human Capital (HC) is considered as the main force in achieving economic development of countries. Among the existing factors of production, labor is considered as a variable cost, and the costs involved in physical capital are considered as investments in the production function. Later, many have argued that production itself is not a function of labor alone, but can be defined only in terms of the number of managers or working hours, because it depends on the quality of labor (which is mainly determined by knowledge and experience). Here, the skills related to labor can be further improved and developed.
The article examines “human capital” and the moments of its formation.
The issue of human capital and expected income from its development are investigated, human behavior, education and the importance of practical skills are also noted. In addition, the role of intellectual capital in the development of human capital is noted in the article. The importance of health issues and longevity as special components of human capital are also noted here.

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