Qualifications of human capital, including technological information, skills and experience, determine the value added in production, and this created value added brings out economies’ growth potential and competitive power. Higher education is a stage where human capital specializes and develops its skills, hence contributes to societal development in many aspects.In this study, human capital was considered in terms of higher education graduates, who were defined as knowledge workers, and it was aimed to measure the effect of the number of higher education graduates on Turkey’s economic growth in the period of 1923-2016. For this purpose, the long term relationship between variables were analyzed with Johansen Co-integration analysis method. A co-integration between gross domestic product and the number of higher education graduates in Turkey was found and it was determined that these two variables moved together in the long term. moreover, it was determined that an increase in gross domestic product would lead to an increase in the number of higher education graduates however, in the short terms, gross domestic product was not found to have an effect on the number of higher education graduates. Although quantitative increase in higher education graduates creates economic growth, qualitative development and shaping of higher education in accordance with employment opportunities are important as necessary developmental precautions.
Higher Education, Human Capital, Economic Growth