Abstract:

This article constructed a panel data model to investigate the effect of human capital on economic growth by using the data of 17 countries from Middle East and North Africa for the period between 2000 and 2018.  We use the Generalized Moment Method on dynamic panel to examine in the first time the effect of government expenditure on education on economic growth.  We also introduce the secondary school enrollment into the model to explore the influence of education on growth rate. The result shows that in general, education human capital has a significant positive impact on economic growth. The positive impact of government expenditure on education on economic growth is especially significant. Investment in human capital, with the right policy assessments and rehabilitation, can be translated into an essential element of growth in the economies. However, secondary education have a significant impact on economic growth indicated that results are statistically significant with P value (0.000) at 5% level of significance.