MEASURING AND ANALYSING THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND HUMAN CAPITAL IN IRAQ USING LUCAS MODEL FOR THE PERIOD (2003-2020)

Abstract

This study deals with the topic of the relationship between economic growth and human capital in the Iraqi economy for the period 2003-2020 (using the Lucas model), which revealed the possibility of generating sustainable internal growth through the accumulation of human capital. As such, the higher the human capital, the higher the rate of economic growth. Our standard analysis concluded that the relationship between the accumulation of human capital and the time devoted to education, expressed in the average years of schooling, was significant. There is also a two-way causal relationship, and in a manner consistent with the logic of economic theory. The more knowledge and skills of human capital accumulate, the better the productivity of work, which pushes economic growth towards increase.