Human Capital and Economic Growth: Causality Analysis, 1969-2001

The aim of this paper is to investigate the causality issue between human capi- tal and economic growth. With the emergence of endogenous growth theories, the relati- onship between human capital and economic growth has become a theorically debated and emprically tested issue. Following the literature, different human capital indicators, Human Development Index, Combined Enrollment Ratio, Education Index and Life Ex- pectancy Index, have been used in this article compared to other studies. The empirical results show that the direction of causality between human capital and economic growth depends upon the selected measures of human capital. These results indicate that econo- mic growth, on the one hand, determines the human capital and, on the other, be determi- ned by the indicators of human capital.