Econometric Study of the Impact of Human Capital on Economic Growth in Algeria During the Period (1970-2014)

Abstract

This study aims to determine the impact of human capital (expressed by secondary schooling crude percentage) on economic growth in Algeria (expressed by the rate of per individual share of GDP), during the period (1970-2014), and analysis of the equilibrium relationship between the two factors in the long run, toward this aim we based our study on world bank data, using eviews 9 program, the benchmark analysis revealed a statistically significant correlation between variations in human capital and economic growth as well as causal correlation between the two factors, which means that the increase in human capital lead to economic growth and vice versa, we have also estimated the relationship using error correction model to obtain more accurate results about the dynamic relationship, in addition to estimating error correction indicator, and the results also revealed that economic growth is related to its determinants with joint complementary relationship, which includes the existence of equilibrium relationship in the long run, which is positively influenced by human capital that was significant, these outcomes appeared to be consistent with economic logic, and in favor to come similar applied studies.