Using the ARDL model to analyze the causal relationship between human capital and GDP in the Iraqi economy environment.

JOURNAL OF ADMINISTRATION AND ECONOMICS
2019, Volume 8, Issue 31, Pages 506-536

Abstract

The goal of this paper is to explore the impact of the human capital (HC) on the grosse domestic product (GDP), in the Environment of the Iraqi economy during the period (1980-2014).We have used the Autoregressive- Distributed Lag Model (ARDL) to analyses time series data, where (X) and (Y) represent the human capital and the GDP variables consequently. Also, the error– correction was used to investigate the model validity. The paper concluded that the Granger Causality Test, was only one-way causality in our case. In addition, we found that the human capital had a significant effect in the GDP in Iraq.