Human capital and economic growth in Algeria: impact study (1990-2018) -ARDL approach-

Abstract

Through our research we tried to highlight the role of human capital at driving economic growth through measuring the influence of education and health on the GDP. In order to reach our objective, we used the bound cointegration technique (Autoregressive Distributed Lag (ARDL) cointegration technique) to estimate the long run relationship and to analyze the implication of the human capital on the economic growth in Algeria during the period 1990-2018. As a result, we figured out a significant positive long run relationship between the human capital which is represented by mean years of schooling as a proxy for the education variable and life expectancy at birth as a proxy for the health variable and the economic growth represented by the GDP where a 1% increase in the mean years of schooling and life expectancy at birth variables will increase GDP by 0.2%, 2.1% respectively