Human capital and its effects on economic developments : An analysis on Turkey

Studies aimed at measuring the effects of human capital which shows the qualitative development of labour on development began in 1960s. It has begun to be accepted that knowledge and skills of labour acquired by formal and informal education are the important explainations of development and sustainable growth. In recent years, in addition to classical factors of production, increasing importance of human capital has caused reconsideration of growth and development policies. Because it is not possible to explain economic wellbeing by physical capital itself. The necessary measures must be taken in order to develop not only physical capital but also human capital and use it efficiently. In addition to the education which constitutes of the main resource of human capital, the level of education and of health of society is an another important element to foster and contribute to the human capital as well. Therefore, it can be argued that there is a close relationship between the health and education level of society, brain drain and economic development. Moreover, the level of development also accelerates the economic growth by increasing the productivity. Increment in the labour?s productivity by education, learning by doing etc. Brings about an increase in other production factors? productivity and technological development. In this presentation, the relationship between the health, education, brain drain and economic growth are investigated in Turkey. Human capital indicators of Turkey are evaluated comparing with the indicators of OECD countries