| Physical Capital | Human capital |
1. Any non-human asset made by humans and then used in production
it is known as physical capital. | 1. When the existing 'human resource' is further developed by becoming more educated and healthy we call it human capital formation that adds to the productive power of the country. |
| 2. Physical capital represents production capacity of a nation. | 2. Human capital is the cause behind physical capital. |
| 3. Physical capital has relatively less economic value. | 3. Human capital has relatively more economic value. |
| 4. Physical capital is tangible. | 4. Human capital is intangible. |
| 5. It depends on a person’s conscience as to whether or not he/she wants to raise the earnings. It creates both private and social benefits. | 5. It can be built through imports and creates only private benefits. |
