MODEL STUDIES IN HUMAN CAPITAL SPECIFICATIONS RELATED TO FACTORS AFFECTING GROWTH

Abstract

From the middle of the 20th century, an information revolution has taken place that leads to the addition of 'Information' to basic production factors. While the accumulation of capital and labor factors has been directly related to economic growth in certain Sectors, the growth literature has introduced new concepts in terms of its effects on economic growth. These are concepts such as information society, knowledge economy, human capital, research and development (AR-GE), learning-by-doing and technology diffusion (spillover) and are at the center of new growth theories. Romer has included human capital accumulation as an important locomotive of economic growth in the internal growth model. Furthermore, Mankiw et al., Who further developed the Solow-type growth model, investigated how the economies of the steadystate countries could be able to regain growth again. For this purpose, the model included physical and human capital as the main factors affecting growth. Another important factor in the interaction between human capital and economic growth is R & d (Research & Development) expenditures. Increasing or activating R & d expenditures in terms of human capital investments leads to an increase in physical investments and allows a high real growth trend to be achieved. Human capital, an important source of internal growth models, knowledge, skills and individual abilities, and in this sense it provides significant benefits to development. From this point of view, there are many academic and / or empirical studies on the role that maturation plays in the development process. It is emphasized that human capital plays an important role in economic development, especially at the point of investments in education and health. Parameters that define human capital in econometric analyzes are usually reached with variables related to education. In this study, we will try to examine the effects of these factors which determine economic growth by using econometric models. The study seeks to explain the impact of investments in education and health, which are important components of human capital, on economic development.