Investment in Human Capital to Promote Knowledge-Based Economy: Data Analysis in the GCC

This study aims to investigate the impact of human capital (HC) investment in increasing the presence of optimal human capital which enhances the driving force for economic growth within the Gulf Cooperation Council (GCC) region. Research method relied on the Cobb-Douglas production function as considered in the endogenous growth model in their significant contribution to the theory of Economic Growth. The multivariate nonlinear Granger causality test was applied to measure the dependencies between human capital and growth. The study utilized and analyzed secondary data obtained from various publications of international bodies and their subsidiary organizations (e.g., UN, IMF, World Bank, GII, etc.), Real GDP figures and employment rates. Also, capital stock data were sourced and adopted from Penn World Table 9.0 data for the period ranging from 1990 to 2019. Findings revealed a relationship between HC and economic growth through developing the economy in applying the knowledge and skills of individuals in various aspects of the economy to knowledge capital.