Abstract

  In modern economic growth theory, human capital is not only an important source in the growth of economy but also has got a significant effect on productivity. According to the analysis of the results based on random effects estimation with panel and crosssection data in the study, mean years of schooling is found as a determinant of the economic growth via health improvement achieving a productive labour force in High Income Countries. Data for mean years of schooling was obtained from United Nations Development Programme (UNDP) Human Development Reports and Barro-Lee Educational Attainment Dataset whereas for income per capita from the World Bank for the 12 periods in 1995-2014 for 37 High Income Countries and Turkey. Since mean years of schooling in Turkey has been found less than the High-Income Countries’ values, she should increase mean schooling years to reach a healthy well-being level to get a productivity progress causing a rapid economic growth as advanced countries.
In the study we analysed Turkey vs 37 High Income Countries. Turkey who is also an emerging economy has a risk to rise to an upper income level as some other middle income countries have. The case is called in literature as "Middle Income Trap". So benchmarking Turkey (the 17th greatest economy in the world) vs High Income Countries is important to show guidelines avoiding the Middle Income Trap.
Granger causality test is also applied to test the direction of causality between mean years of schooling (MYS) with national income per capita (IPC) and vice versa, and it is seen that mean years of schooling (MYS) Granger causes economic (income per capita) growth (IPC) for panel data. For cross-section data analysis there is no proved correlation between mean years of schooling (MYS) and economic growth (IPC) and vice versa.

Keywords: Mean Years of Schooling; Human Capital; Economic Growth

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Citation

Citation: Metin Gurler and Ozlem Ozsoy. “Schooling Effect in Economic Growth: Benchmarking Turkey vs High Income Countries".Acta Scientific Nutritional Health 5.1 (2020): .

Copyright

Copyright: © 2021 Metin Gurler and Ozlem Ozsoy. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.