Abstract

In the new growth literature, the effects of human capital power on the economic growth performance are of vital importance. Education and health expenditures are the basic components determining human capital power. Developments both in the field of education and health affect economic growth positively by way of increasing human capital power. In this study, out of the components of human capital, education expenditures was discussed. In the study, the annual data related to the period of 1968 to 2010 of the Turkish economy was tested by using the co-integration method and according to the findings, it was concluded that there is a long-term relationship between the variables of economic growth and education expenditures in Turkey. Key words: Education, economic growth, human capital.

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