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Education and development in the caribbean: a cointegration and causality approach

Author

Listed:
  • Brian Francis

    (Department of Economics, University of the West Indies, Cave Hill Campus)

  • Sunday Iyare

    (Department of Economics, University of the West Indies, Cave Hill Campus)

Abstract

This paper uses cointegration and vector error-correction models to analyse the causal relationship between education and development in Barbados, Jamaica, and Trinidad and Tobago using annual time series data from 1964 to 1998. Expenditure on education per capita is used as the proxy for education, while gross national income (GNI) per capita is the proxy for development. The empirical results provide some evidence of bi-directional causality in the short in Jamaica. There is no evidence of causation running from per capita expenditure on education to per capita gross national income in either the short or long run in Barbados, and Trinidad and Tobago. A major policy implication of the findings is that countries with higher per capita gross national income (GNI) seem to be spending more per capita on education.

Suggested Citation

  • Brian Francis & Sunday Iyare, 2006. "Education and development in the caribbean: a cointegration and causality approach," Economics Bulletin, AccessEcon, vol. 15(2), pages 1-13.
    • Handle: RePEc:ebl:ecbull:eb-05o10022
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Md Abdul Wadud & Qamarullah Bin Tariq Islam & Tariq Saiful Islam, 2007. "Relationship between education and GDP growth: a mutivariate causality analysis for Bangladesh," Economics Bulletin, AccessEcon, vol. 3(35), pages 1-7.
    2. Adejumo, Oluwabunmi O. & Asongu, Simplice A. & Adejumo, Akintoye V., 2021. "Education enrolment rate vs employment rate: Implications for sustainable human capital development in Nigeria," International Journal of Educational Development, Elsevier, vol. 83(C).
    3. Trofimov, Ivan D., 2020. "The optimum size of public education spending: panel data evidence," MPRA Paper 106847, University Library of Munich, Germany.
    4. Nadia Benali (a) and Rochdi Feki (b), 2020. "The Relationship between Natural Disasters, Education, ICT and Economic Growth:Empirical Evidence from ARDL Bounds Testing Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(4), pages 93-111, December.
    5. Rimsha Javed, 2021. "Nexus Between Economic Growth, Health, and Education in Pakistan: An ARDL Bound Testing Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 11(6), pages 56-65.
    6. Awel, Ahmed Mohammed, 2013. "The long-run Relationship between Human Capital and Economic Growth in Sweden," MPRA Paper 45183, University Library of Munich, Germany.
    7. Pașa Adina Teodora & Gherghina Elena Mădălina & Picatoste Xose, 2022. "Financial Literacy and Economic Growth: How Eastern Europe is Doing?," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 27-42, January.

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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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