Document Type : ORIGINAL ARTICLE

Authors

• Nader Mehregan ¹
• Asghar Sepahban Gharehbaba ²
• Elham Lorestani Lorestani ²

¹  Associate Professor of Economics, Bu Ali Sina University

² MA in Economics, Razi University

Abstract

In Lucas growth endogenous, we focus on human education that causes the weakness of decline return.
Therefore the lack of autogenous technology cannot omit long term per capita growth.
Human capital against autogenous growth model can be saved by investment  i.e. people can choose how long they invest on education. So it is supposed that human capital is an accumulated input with fix return.
Finally from the model concluded that in shortage of autogenous technical progress the long term growth rate can be explained by accumulation of human capital.
In this paper it is tried to search the effect of human education on growth rate in Iran by Lucas growth endogenous.
The model that has been used in this paper is estimated by time series of 1959-2007 and five steps co-integration approach of Johansson and Vector Error Correction Model.
Finally, based on two obtained co-integrated vectors, it is concluded that in long term there is a positive relationship between index of knowledge oriented employment and increase of physical capital^'s accumulation on Iran's economic growth.
In addition, both of these vectors show that knowledge oriented employment has been very influential in the economic growth of the country in the long term.

Keywords

• Education
• Economic Growth
• Lucas Growth Model
• Co-integration
• Vector Error Correction Model