The Role of Human Capital on Iran's Economy Growth by using Auto Regressive Distributed Lag (ARDL) Model

In this article we conducted the production elasticity in separation of human capital and the other production elements to identify the importance of human capital versus physical capital in official and private sections. For this purpose, first we studied theoretical principles of the growth models and the related previous studies. Then a Human capital model presented by Mankiw-Romer and Weil was used to estimate Iran's economy during 1978-2006, by using auto regressive distributed lag (ARDL). We used the mean of the years as the human capital index. The results indicated that the rate of human capital is more than physical capital in official and private sectors in a shorttime and longtime of the production elasticity. The error turn coefficient (ETC) showed that in every period, %34 of inequality was modified in gross domestic production (GDP) and it is going towards the longtime current