HUMAN CAPITAL AND ECONOMIC GROWTH: THE CASE OF G7 COUNTRIES

Abstract

The concept of human capital is discussed by some economists of today as a concept that has effects on economic growth for developed and developing countries. The aim of this study is to reveal the relationship between economic growth and human capital. For this purpose, the relationship between human capital and economic growth was tested by using the panel data analysis. The Human Development Index for seven developed countries represents human capital in the regression model. The study was carried out within the scope of 7 economies of developed countries for the period between 1991-2017. Findings reveal that human capital positively affects economic growth. As a result of the research, it emphasizes the need to attach importance to human capital in the process of economic growth.