The relationship between human capital and economic growth in Turkey through endogenous growth model

External technological changes has ignored the reasons of long-run sustainable growth. As of the mid 1980s, with the techological changes endogenized through the Endogenous growth theories, political factors of long-run sustainable growth which are R&D, human capital and public expenditirues have taken into consideration.In this master thesis, the role of human capital on Turkey?s economic growth as an effective political factor has been tried to estimate. The datas including sub period 1980-2006, from the viewpoint of Cobb-Douglas production function with the growth accounting survey, the effects of human capital on economic growth has been presented. As a result of conducted econometric analysis, the dominant factor of economic growth is based on physical capital while human capital factor is weakly based on and the effect of human capital is more effective in services sector. In order to use human capital as an effective political factor of economic growth, Turkey?s human capital indicators needs to be improved to the developed countries level.