Authors
Abstract
Human capital has always been of high importance in economic growth literature. In this regard, several studies have tried to explain the role of this variable via the use of different models. The present study, in line with the previous ones, going to estimate the share of human capital in Iranian economy production from 1974 to 2011 within the framework of Ozawa (1965) and Lucas’s (1988) endogenous growth model. In this study, the Autoregressive Distributed Lag Modelling Approach (ARDL) is employed to estimate the role of human capital in production. Moreover, the average of schooling years is used as an index of human capital. The results indicated that in spite of a positive and significant relationship between human capital and GDP, physical capital plays a more important role. While the share of human capital is 0.59, physical capital has a share of 0.75. based upon literature review, share of human capital must be more important and influential, so regarding distraction of main reasons of this phenomena the study recommends that we need to make university fields more productive-based.
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