The Relationship between Human Capital and Economic Growth in Post-1980 Period in Turkish Economy

Endogenous growth theory is based on the idea that there are some factors in the growth process in economies that cannot be explained with human capital. Endogenous growth theory developed by Romer, contrary to the neo-classical growth theories explaining the economic growth with physical production factors, discusses that the human capital has an important place among the dynamics of economic growth. In the study, human capital factor, having a significant place in the growth process of today’s economies, is discussed as a human development index, and its effect on growth rate is analyzed for the period 1980-2011. According to the results of the analysis, a cointegration relationship was detected to be present between human development index and growth rate; however, no causality relationship was observed in the short term. Keywords: Endogenous Growth Theory, Human Capital, Economic Growth