Authors: F.N. Mayilyan

Title of the article: Human capital and the phenomenon of increasing returns in economic growth models

Year: 2025, Issue: 4, Pages: 51-60

Branch of knowledge: 5.2.1 Economics

Index UDK: 338.1

DOI: 10.26730/2587-5574-2025-4-51-60

Abstract: The paper investigates the historical preconditions underlying the emergence of the concept of the principle of diminishing returns to factors of production. An analysis of the manifestation of this principle in the scope of all factors of production is carried out. In light of the analysis of the characteristics of human capital, an approach has been proposed in which the principle of diminishing marginal returns is not applicable to investments in human capital at the macroeconomic level in the long run. Human capital generates increasing returns on investment while alleviating the impact of diminishing returns on other factors of production

Key words: factors of production principle of increasing returns human capital investments in human capital knowledge economic cycle economic growth

Receiving date: 22.11.2025

Approval date: 04.12.2025

Publication date: 23.12.2025

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