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In this study, the relationship between human capital, and economic growth is discussed for developed and developing countries from an institutional perspective. 26 developed and 64 developing country groups with their annual data of 2002-2016 period is analyzed using real GDP per capita, education index, per capita health expenditure, democracy index, rule of law index and the control of corruption index with the panel data analysis method. Since the models installed in the analysis do not have model assumptions, the Driscoll-Kraay resistive estimator is predicted to achieve effective and consistent results. According to findings, it is determined that the relationship among education, health, democracy, legal structure, control of corruption and economic growth is positive in developed countries. It is determined that there is a positive relationship among education, health, corruption control and economic growth in the developing country group and a statistically insignificant relationship between democracy and legal structure. [ABSTRACT FROM AUTHOR]

With the development of new (endogenaus) growth theories, it is observed that the major role in these theories had been given to human capital. Although offical or non-offical education indicators are the main indicators which represent human capital, the indicators about the health level of a society also appear in growth models as an element which feeds human capital and contributes its development. The literature which discuss the relation between economic growth and human capital could not come to a consensus about the relation between the variables which represent human capital and economic growth indicators. There are studies, in the literature, which support one-way or mutual causality relations regarding the direction of the causality. Hence, it is necessary to conduct predictions by using larger data sets and new econometric models. This study predicts the relationship between human capital and economic growth by using Emirmahmutoglu and Kose (2011) approach, which is one of the new generation panel causality tests, for the four different country groups by income levels which is classified by the World Bank for the period of 1995-2014. We used personal healthcare expenditures, total healthcare expenditures, private healthcare expenditures and public healthcare expenditures as human capital indicators, and personal income as economic growth indicator. The results obtained, according to the country groups, point to two-way causality relation between variables. [ABSTRACT FROM AUTHOR]