Education, Technical Progress, and Economic Growth in the Information Age

Recent studies consider education and human capital growth as a main source of economic growth. In the classical model, population growth and capital accumulation was envisaged as an engine of economic development. Population and market rate of wages were believed to have mutual affinity. Neoclassical model, it is known as Solow Model, shows capital accumulation would increase the growth rates in the short run, but cannot generate any long run GDP growth rate increase. The Solow model implies that economies will conditionally converge to the same level of income, given that they have the same rates of savings, depreciation, labor force growth, and productivity growth. This study firstly examines the structural and economic changes in Turkish economy and then analysis the effect of education and the role of technical progress on Turkish economic growth during the period 1990-2012. This study finds out that the real GDP growth rate is dependent on capital formation and growth rate of labor force.