The Effect of Human Capital on Economic Growth

The concept of human capital emerged with the realization that economic growth cannot be explained solely by changes in physical capital. In this context, human capital is directly related to factors such as education, health to increase the productivity of individuals and their contribution to the economy. Economic growth is defined as the increase in the production of goods and services over time. However, the fact that this increase is sustainable and increases the welfare of the society shows the importance also investments in human capital. TDenison, Mankiw-Romer-Weil, Becker-Schultz and Jorgenson approaches from neo-classical growth models and Barro, Lucas and Charles Jones approaches from endogenous growth models are examined as economic approaches that focus on the effect of human capital on economic growth. In this study, which is specific to Türkiye, the long-term relationship between human capital and economic growth is examined in Türkiye with the GDP and human capital index between the years 2000-2022.