Human Capital and Economic Growth in Greece: Evidence from the Toda–Yamamoto Approach

Georgios Garafas, Ioannis Sotiropoulos, Georgios Georgakopoulos


The current article attempts to investigate the causal relationship between human capital and economic growth in postwar Greece. For this purpose, we use annual time series data from 1952 to 2017 retrieved from the Penn World Table (PWT) version 9.1 and we apply the Toda –Yamamoto (1995) approach. Our findings indicate a one-way causality that runs fromhuman capital to economic growth. This is consistent with proposals that the Greek government, despite budget cuts due to the recent fiscal financial crisis, should focus its efforts on the development of human capital in order to achieve sustainable economic growth.

JEL Classification: I25, O40, C22


Human Capital, Economic Growth, Toda-Yamamoto Approach, Greece

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η δικτυακή πύλη της ευρωπαϊκής ένωσης ψηφιακή ελλάδα ΕΣΠΑ 2007-2013