Countries that invest in capital goods and human capital tend to experience economic growth. This is because investing in capital goods, such as machinery and equipment, can lead to increased productivity and efficiency, which in turn can lead to increased economic output. Investing in human capital, such as education and training, can also increase productivity and innovation, leading to economic growth.
Specialization can also be a result of investing in capital goods and human capital. By investing in specific industries or areas of expertise, countries can become more specialized and competitive in those areas, leading to further economic growth.
Political conflict is not necessarily a direct result of investing in capital goods and human capital, but it can be a factor that affects economic growth. Political instability and conflict can disrupt economic activity and investment, making it difficult for countries to experience sustained economic growth.