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The Effect of Institutions and Human Capital on Economic Growth: The Case of Turkey

Author

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  • Burcu Kuzören

    (Zonguldak Bülent Ecevit Üniversitesi, Sosyal Bilimler Enstitüsü, İktisat Anabilim Dalı, Zonguldak, Türkiye.)

  • Hamza Çeştepe

    (Zonguldak Bülent Ecevit Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Zonguldak, Türkiye.)

  • Hüseyin İçen

    (İstanbul Üniversitesi, İktisat Fakültesi, Ekonometri Bölümü, İstanbul, Türkiye.)

Abstract

Regardless of the level of development, the sources of economic growth, which is one of the main objectives of all countries, are divided into two as direct and indirect sources. It is stated that indirect resources such as human capital and institutions affect the growth as well as direct resources such as labor, physical capital and natural resources. In this study, human capital and institutions that have an impact on how economic growth in Turkey’s case was examined empirically. For this purpose, ARDL bounds test was performed by using the data of 1960-2014 period. In this study, the schooling rate is used as an indicator of human capital and the index of political freedoms is used as an indicator of institutions. In other words, It can be said; human capital positively affects economic growth in Turkey when political freedoms are good. In this context, policies to improve the quality of human capital and institutions in Turkey should be identified and put into practice in a structured way.

Suggested Citation

  • Burcu Kuzören & Hamza Çeştepe & Hüseyin İçen, 2019. "The Effect of Institutions and Human Capital on Economic Growth: The Case of Turkey," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 30(0), pages 65-81, June.
    • Handle: RePEc:ist:ekoist:v:30:y:2019:i:0:p:65-81
    DOI: 10.26650/ekoist.2018.30.0010
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    References listed on IDEAS

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    More about this item

    Keywords

    Institutions; Human capital; Economic growth; ARDL;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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