The effect of human capital on economic growth: The case of Turkey

The aim of this master's thesis is to empirically examine the relationship between economic growth and human capital in Turkey. The thesis consists of three parts, in the first part there are concepts related to the explanation of economic growth and human capital in the thesis, and in the second part, economic approaches on the role of human capital in economic growth are included. In the third chapter, which is the last chapter, the relationship between human capital and economic growth in Turkey is analyzed econometrically. The concept of human capital emerged with the understanding that economic growth cannot be explained only by changes in physical capital. As a concept, human capital can be explained as the competencies that the workforce has such as knowledge, skills and abilities. Economic growth is defined as the increase in the production of goods and services over time in a certain period. Denison, Mankiw-Romer-Weil, Becker-Schultz and Jorgenson approaches from neo-classical growth models and Barro, Lucas and Charles Jones approaches from endogenous growth models are examined as economic approaches that focus on the effect of human capital on economic growth. In this study, which is specific to Turkey, the long-term relationship between human capital and economic growth is examined in Turkey with the GDP and human capital index between the years 2000-2022.