Document Type : Original Article

Authors

1 Assistant Professor of Economics, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

2 Associate Professor of Economics, Department of Economics, Faculty of Economics and Management, Tabriz University, Tabriz, Iran

https://doi.org/10.34785/J025.2022.001

Abstract

Based on the Lucas economic literature and growth model; the quality of manpower is one of the factors affecting economic growth. The present study has evaluated the Lucas economic growth model in the provinces of Iran using the GMM method during the period 2006-2019. Human capital is a latent variable in economics and is replaced by alternative proxies. Based on theoretical foundations, it is argued that the human capital index, in addition to the education aspect, is influenced by other aspects such as; there is also skill and health. Therefore, in this article, using fuzzy logic, an index for human capital in the provinces of Iran has been constructed that considers the three main aspects (education, skills and health) of human capital. The results of estimating the Lucas economic growth model using the fuzzy human capital index showed that improving the level of human capital increases the economic growth of the provinces of Iran. Other research results show the positive effects of industrialization, labor force participation, physical capital and economic growth of the previous period on the economic growth of Iranian provinces. Also, the size of government and urbanization have a negative impact on the economic growth of Iranian provinces.

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