The impact of human capital on gross domestic production by James Raymo approach

The recent theories of economic growth indicated human capital and technology knowledge have an important role on economic growth. This study is going to investigate the role of human capital on GDP of Iran. We use James Raymo(1995) model which includes three variables: physical capital, labor force and human capital. Using cointegration method of Johanson and Juselius, The results of this paper suggest human capital has a positive impact on GDP in long-run, while it has a little and negative impact on GDP in short-run.