The Role of Average Years of Schooling on Economic Growth (Barro and Lee Approach to Measuring Human Capital)

Nonlinear relationship between education and e The main objective of this study is to investigate the role of human capital on economic growth in different economies. For this purpose, we consider a model in which the growth rate of total factor productivity (GRTFP) depends on human capital stock levels, and human capital affects GRTFP through innovation and technology adoption from abroad. Using a cross-country panel approach for 104 countries, including 79 developing countries and 25 OECD countries, in five-year intervals during the 1980-2005, we found the relationship between human capital and economic growth is nonlinear. In addition, the development of domestic technology is more effective factor on economic growth in developing countries than catch-up factor, while human capital accumulation through technology adoption from abroad is more effective factor on economic growth in developed countries. conomic growth (Barro and Lee's approach in measuring human capital) The goal of this study was to investigate the role of human capital on economic growth in different economies. For this purpose, we examine the relation between growth rate and human capital by econometric models. In this paper, using the panel approach to Iran and 103 other countries, and considering the five-year moving average during 2005-1980. we realized that the relationship between levels of human capital and economic growth is nonlinear and development of domestic technology, operating more important role in economic growth in developing countries. The main result of this paper denote that there are different between growth pattern among developed and developing countries.