In this study, how the human capital disaggregated by gender and physical capital affects economic growth in Turkey is examined for the period of 1971–2015. By using an arithmetic average of health and education indicators as a proxy of human capital formation, an attempt was made to examine the relationship between the human capital and economic growth under the scope of gender inequality. In this context, an ARDL-bounds testing approach and the unrestricted error-correction model were used to investigate the co-integration in the long- run and short run. Further, the causality test was also conducted to identify the direction of the causality between the variables. The main finding indicates that male human capital has been the central variable affected by both economic growth and physical capital. On one hand, a significant positive relationship was found between the economic growth and physical capital and male human capital in the long-run, while on the other hand, the female human capital was associated negatively to the economic growth. There is no evidence of causality that links the female human capital to other variables. This result suggests that women are not well utilized in the Turkish economy and the country suffers from untapped potential of women.
Clark, J. A. & Mirza, S. (2006). A Comparison of some common methods of detecting ganger noncausality. Journal of Statistical Computation and Simulation. 76(3), 207–231. DOI: https://doi.org/10.1080/10629360500107741
Dae-Bong, K. (2009). Human capital and its measurement. The 3rd OECD World Forum on “Statistics, Knowledge and Policy” Charting Progress, Building Visions, Improving Life Busan. Korea - 27-30 October 2009 Retrived 01.03.2018 from http://www.oecd.org/site/progresskorea/44109779.pdf.
Dickey, D. A. & Fuller W.A. (1979). Distribution of the estimators for autoregressive time series with a unit root, Journal of the American Statistical Association. 74(366), 427–431. DOI: 10.2307/2286348.
Engle, R.F. & Granger, C.W.J. (1987). Co-integration and error correction: representation, estimation and testing. Econometrica. 55(2), 251–276. DOI: http://dx.doi.org/10.2307/1913236.
Chuang, Y. (2000). Human capital, exports, and economic growth: a causality analysis for taiwan, 1952–1995, Review of International Economics. 8(4), 712–720. DOI: https://doi.org/10.1111/1467-9396.00252.
Cooray, A., Mallick, S. & Nabamita, D. (2014). Gender-specific human capital, openness and growth: exploring the linkages for southasia. Review of Development Economics, 18(1), pp.107-122. DOI: https://doi.org/10.1111/rode.12072
Granger, C.W.J. (1969). Investigating causal relations by econometric models and cross spectral models. Econometrica. 37(3), 424–438. DOI: 10.2307/1912791.
Hu, Z.L. & Khan, M.S. (1997). Why is china growing so fast?. IMF Staff Papers. 44(1), 103-131.
Jung, H. & Thorbecke, E. (2003). The impact of public education expenditure on human capital, growth, and poverty in tanzania and zambia: a general equilibrium approach. Journal of Policy Modeling. 25(8), 701–725. DOI: https://doi.org/10.1016/S0161-8938(03)00060-7.
Karaalp-Orhan, H.S. (2017a). Human capital and economic growth: bounds and causality analysis for turkey. Research Journal of Politics, Economics and Management. 5(1), 21-32.
Karaalp-Orhan, H.S. (2017b). What are the trends in women’s labour force participation in turkey? European Journal of Sustainable Development. 6(3), 303-312. DOI: 10.14207/ejsd.2017.v6n3p303.
Kaur, N.G. & Letic, J. (2012). Female education and economic growth: theoretical overview and two country cases, Unpublished BSc dissertation, School of Business, Economics and Law, University of Gothenburg.
Khan, K.M. (2016). Contribution of female human capital in economic growth: an empirical analysis of pakistan (1972-2012). Quality & Quantity. 50(2), 709-728. DOI: https://doi.org/10.1007/s11135-015-0172-6.
Knowles, S., Lorgelly, P. K., Owen, P. D. (2002). Are educational gender gaps a brake on economic development? some cross-country empirical evidence. Oxford Economic Papers. 54, 118-149. DOI: 10.1093/oep/54.1.118.
Morrison, A., Raju, D. & Sinha, N., (2007). Gender equality, poverty, and economic growth. Policy Research Working Paper No. 4349. Washington, DC: World Bank
Önder K and Önder E. (2012). The role of the female education in economic growth: a case for turkey, Gümüşhane Üniversitesi Sosyal Bilimler Elektronik Dergisi. 5,59-176.
Öztunç H., Oo, Z.C. & Serin, Z.H. (2015). Effects of female education on economic growth: a cross country empirical study. Educational Sciences: Theory and Practice. 15(2), 349-37. DOI: 10.12738/estp.2015.2.2351
Pesaran, M.H., Yongcheol, S. & Smith R.S. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics. 16(3), 289–326. DOI: https://doi.org/10.1002/jae.616.
Phillips, P.C.B. & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika Trust. 75(2), 335–346. DOI: 10.2307/2336182
Pitarakis, J.Y. & Tridimas G.G. (2003). Joint dynamics of legal and economic integration in the european union. European Journal of Law and Economics. 16(3), 357–368. DOI: https://doi.org/10.1023/A:1025366909016.
Romer, P.M. (1990). Are non-convexities important for understanding growth. The American Economic Growth. 80(2), 97-103.
Sehravat, M. & Giri, A.K. (2017). Does female human capital contribute to economic growth in india?: an empirical investigation. International Journal of Social Economics. 44(11), 1506-1521. DOI: https://doi.org/10.1108/IJSE-10-2015-0272.
Schultz, T.W. (1961). Investment in human capital. The American Economic Review. 51(1), 1-17.
Schultz, T.P. (2003). Human capital, schooling and health returns. Working Papers 853, Economic Growth Center, Yale University.
Sims, C.A., Stock, J.H. & Watson, M.W. (1990). Inference in linear time series models with some unit roots, Econometrica. 58(1), 113–144. DOI:10.2307/2938337.
Solow, R.M. (1956). A Contribution to the theory of economic growth. Quarterly Journal of Economics. 70(1), 65-94. DOI: 10.2307/1884513
Wolde-Rufael, Y. (2007). Another look at the relationship between telecommunications investment and economic activity in the United States, International Economic Journal, 21(2): 199-205. DOI: 10.1080/10168730701345372