Higher Education, Real Income and Real Investment in the Selected Ole Members: Evidence From Ardl and Panel Data Approaches

Higher education, through increasing the human capitalstock of individuals, improves productivity and thereforecontributes to economic growth. from economic point of view,this type of expenditure is considered as a long-run investmentwhich increases growth rate and forms a higher capacity ofhuman capacity. the implication is that a dynamic relationshipbetween growth rates of education, income and investment canbe implemented in a specific time path.this paper employs ardl and panel data modeling to testthe causal relationship between real income, real investmentand human capital using data for the 16 selected oic membersover the period 1980-2005. the empirical results approve along-run effect of human and physical investments. the resultsalso imply a crucial rate of human capital which will play in thefuture developments of the oic countries.