Studying the relation between education as human capital index and Iran's economic growth: a province

Authors
Zahra Farshadfar 1
Naser Elahi 2
Mehdi Moradpur 3
1 Faculty Member, Department of Economics, College of Literature and Humanities, Islamic Azad University, Kermanshah Branch
2 Department of Economics, Mofid University, Qom
3 Doctoral Student, Department of Economics, Mofid University, Qom
Abstract
Education as a key tool for the creation of specialized labor is the most production inputs that have a significant role economic growth and development. Hence, the purpose of present study was to evaluate the impact of education, as a human capital index, on Iran's economic growth. Therefore, needed data for country's 30 provinces were collected from Iranian Statistics Center's different publications during 2000-05. In order to predict a model, 2SLS method on panel data was performed and Moses Oketch recommended model equation were predicted by cross sectional method. Results indicated that focusing on education as one of the human capital indexes could have a positive effect on the country’s economic growth.

Keywords

Aghion, P., & Hewitt, P. (1998). Endogenous growth theory. Cambridge, MA: MIT Press.
Alavirad, A., & Nasirizadeh, V. (2000). Study the relation between human capital and economic growth. Journal of Political Economic Information, 16, 55-70 (in Persian).
Almasi, M., & Sepahban, A .(2008). Study the relation of human capital and physical capital on economic growth. Journal of Research and Planning, 53, 157-186 (in Persian).
Appiah, E.N., & McMahon, W.W. (2002). The social outcomes of education and feedbacks on growth in Africa. Journal of Development Studies, 38, 27-68.
Bargandan, B., & Bargandan, K. (2009). The effect of human capital on economic growth of Iran. Journal of Economic Modeling, 2(12), 39-56 (in Persian).
Barro, R.J. (1997). Economic growth and convergence. In Barro, R. (Ed.), The determinants of economic growth: A cross-country empirical study. Lionel Robbins Memorial Lectures, London School of Economics. Cambridge, MA: MIT Press.
Barro, R.J. (2000, March). The contribution of education to economic growth. OECD Quebec Conference Proceedings, Paris: OECD.
Barro, R.J. (2002). Education as a determination of economic growth. In Laztored, E.P., Education in the twenty first century. Hoover Institution Press.
Ben Habib, J.M., & Spiegel, M. (1994). The role of human capital in economic development: Evidence from cross country data. Journal of Monetary Economics, 34, 66-69.
Birdcall, N.D.R., & Sabot, R. (1993). Under investment in education. The Pakistan Development Review, 32, 42-48.
Elmi, Z., & Jamshidinejad, A. (2008). Effect of education on economic growth. Journal of Human Science, 7(26), 66-81 (in Persian).
Emadzade, M., Khoshakhlagh, R., & Sadeghi, M. (2000). The effect of human capital on economic growth. Journal of Budget and Planning, 5(1&2), 3-25.
Goel, R.K., Payne, J.E., & Ram, R. (2008). R&D expenditures and U.S. economic growth: A disaggregated approach. Journal of Policy Modelling, 30, 237–250.
Lucas, R. (1988).On the mechanism of economic development. Journal of Monetary Economics, 22, 3-42.
Miller, S.M., & Upadhyay, M.P. (2000). The effects of openness, trade orientation, and human capital on total factor productivity. Journal of Development, 15, 55-59.
Oketch, M. O. (2006). Determinants of human capital formation and economic growth of African countries. Economics of Education Review, 25, 554-564.
Pritchett, L. (1996). Where has all the education gone? Policy Research Department, The World Bank. Washington D.C., Policy Research Working Paper.
Rahimi Borojerdi, B.A. (2001). Empirical study on indigenes and exogenesis effect of variable on investment in Iran. Journal of Economic, 23, 50-64 (in Persian).
Reblo, S. (1991). Long-run policy analysis and long-run growth. Journal of Political Economy, 99, 62-65.
Salehi, M. (2002). Effect of human capital on economic growth of Iran. Journal of Research and Planning, 22, 157-186 (in Persian).
Schultz, T.W. (1961). Investment in human capital. American Economic Review, 51, 102-132.
Taghavi, M., & Mohamadi, H. (2003). Effect of human capital on economic growth. Journal of Economic Research, 10, 32-50 (in Persian).
Wolf, A. (2002). Does education matter? Myths about education and economic growth. London: Penguin Books.

  • Receive Date 06 March 2023
  • Revise Date 23 April 2024
  • Publish Date 06 March 2023