Investigating and analyzing the role of human capital, structural changes and their interaction on economic growth

Economic growth is one of the main goals of societies, in which economic well-being is achieved. So far, various theories have been proposed regarding the factors influencing economic growth. However, in this study, using an econometric model, the role of human capital and structural changes on economic growth were investigated simultaneously. The case study was conducted during the period of 1986-2015 for the MENA region countries. The results of the research showed that human capital (expenditures by the government in higher education) have a positive and significant effect on economic growth, but industrialization's structural changes have not been able to affect the economic growth of the region. However, the effect the interaction of human capital and structural changes on economic growth was insignificant. In other words, the expenditures on higher education in the countries under study has not been effective in the industrialization process. In addition, openness to trade and investment have a positive and significant effect on economic growth, but two variables of government size and population growth have a negative and no significant effect on economic growth.