Relationship with human capital and economic growth: A study on g-7 countries

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 use of human capital in the production process in the period after the industrial revolution tended to increase compared to physical capital. In parallel, recent studies in the literature on economic growth have focused on the effects of human capital on economic growth. The purpose of this thesis is to reveal the economic growth relationship of human capital. While the thesis study consists of three chapters, in the first chapter, the concept of human capital concept and its characteristics are explained in the historical process, while in the second chapter, the literature on the relationship between human capital and economic growth is examined. In this framework, the place of the concept of human capital in economic growth models has been examined. In the third part, which constitutes the application part of the thesis, the relationship between human capital and economic growth was testedusing the panel data analysis metod using The Human Development Index representing human capital in the regression model created seven developed countries. The study was carried out within the scope of 7 economies of developed countries for the period between 1991-2017. Findings obtained as a result of research 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.