Human capital has always been of high importance in
economic growth literature. In this regard, several
studies have tried to explain the role of this variable via
the use of different models. The present study, in line
with the previous ones, going to estimate the share of
human capital in Iranian economy production from
1974 to 2011 within the framework of Ozawa (1965)
and Lucas’s (1988) endogenous growth model. In this
study, the Autoregressive Distributed Lag Modelling
Approach (ARDL) is employed to estimate the role of
human capital in production. Moreover, the average of
schooling years is used as an index of human capital.
The results indicated that in spite of a positive and
significant relationship between human capital and
GDP, physical capital plays a more important role.
While the share of human capital is 0.59, physical
capital has a share of 0.75. based upon literature review,
share of human capital must be more important and
influential, so regarding distraction of main reasons of
this phenomena the study recommends that we need to
make university fields more productive-based.