Investigating the effect of demographic changes and human capital on economic growth in Iran

Document Type : RESEARCH PAPER

Authors

1 Associate Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

2 Assistant Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

3 Assistant Professor of Social Science, Department of Social Sciences, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

4 Associate Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran.

Abstract

Human capital is one of the most effective and important factors that affect economic growth. Efficient manpower makes it possible to increase production and added value, and ignoring this important factor can be one of the reasons for underdevelopment in some developing countries. Also, investing in human capital and increasing its share in the total investment of the country, causes better utilization of physical capital and is an important factor in the process of economic growth and development. Therefore, studying the effect of each of these factors on economic growth can help economists in appropriate policy-making. Therefore, this study aimed to investigate the effect of demographic change and human capital on economic growth in Iran to examine the relationship between demographic change, human capital and economic growth in Iran. The study period was (2019-2010) and ARDL technique was used to estimate the study model. According to the results of the long-term dynamic model, it was observed that there is a significant relationship between demographic change and human capital with economic growth. In other words, increasing population change through the dependence of young people and adults has a negative effect on economic growth, but population growth also has a positive effect on economic growth. However, the effect of population changes on economic growth with respect to the coefficients of population change variables reveals its negative effect on economic growth in Iran. It was also found that the life expectancy index of human capital indicators has a positive and significant effect on economic growth in Iran during the study period. In other words, investing in the labor force and increasing their welfare and security in order to improve the life expectancy index, will lead to better economic growth.

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References

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Stable Economy Journal
Volume 3, Issue 1 - Serial Number 6
March 2022
Pages 161-185

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