The Role of Human Capital in Economic . Growth: A Panel Data Analysis

Abstract

The major determinants of long run economic growth have become a hot debatable issue during the past three decades with the development of the endogenous growth models. These models directed the attention of economists and policy makers to such important factors as human capital, technology, and research and development. Moreover, the theoretical framework of these models has laid the foundation for a myriad of empirical studies that were based on cross country growth regressions, time series analyses and more recently, panel data methods. Different proxies have been used for measuring human capital, including average years of schooling, enrolment rates, adult literacy levels, and expenditure on education.