Effects of Human Capital on Economic Growth in Selected Asian Countries

In researches which are conducted in the world, it has been pointed out that there is an important share of human capital on countries’ development. Especially since the middle of 20th centuries, human capital had been stared to get attention in solving problems which countries went through during development and growth. Intrinsic Growth Theory that searches savings of factors which are driving power of growth and mechanism of growth process has been based on thought which there is also factors that cannot be explained by physical capital in the growth process of economies. Human capital factor which has also a big place in growth processes of today’s economies had been taken as humanitarian development index and effect on economic growth had been chosen; it had been analyzed for 5 Asian countries (Hong Kong, Japan, China, Singapore, Korea) in between years of 1990 and 2016 by the help of panel data analysis. Firstly, cross-sectional dependency and homogeneity tests had been performed for variables. Since cross- sectional dependency was found between countries constituting the panel, Hadri-Kruzomi (2012) test which is one of second generation unit root tests and considers cross-sectional dependency had been used to examine the stability of series and Emirmahmutoğlu and Köse (2011) causality test had been used for causality test. According to analysis results, unidirectional causality relation had been determined from economic growth to humanitarian development index.