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Threshold effects of human capital: Schooling and economic growth

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  • Ahsan, Humna
  • Haque, M. Emranul

Abstract

Empirical growth studies have often found average years of schooling to be unrelated with economic growth. This note shows that the significant positive effect of schooling can only be realized after an economy crosses a threshold level of development.

Suggested Citation

  • Ahsan, Humna & Haque, M. Emranul, 2017. "Threshold effects of human capital: Schooling and economic growth," Economics Letters, Elsevier, vol. 156(C), pages 48-52.
    • Handle: RePEc:eee:ecolet:v:156:y:2017:i:c:p:48-52
    DOI: 10.1016/j.econlet.2017.04.014
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    9. Tao Tang & Brayan Tillaguango & Rafael Alvarado & Ximena Songor-Jaramillo & Priscila Méndez & Stefania Pinzón, 2022. "Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions," Sustainability, MDPI, vol. 14(14), pages 1-27, July.
    10. Henry Laverde-Rojas & Juan C Correa & Klaus Jaffe & Mario I Caicedo, 2019. "Are average years of education losing predictive power for economic growth? An alternative measure through structural equations modeling," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-21, March.
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    14. Md. Qamruzzaman & Wei Jianguo & Sharmin Jahan & Zhu Yingjun, 2021. "Financial innovation, human capital development, and economic growth of selected South Asian countries: An application of ARDL approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4032-4053, July.
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    16. Roseline Tapuwa Karambakuwa & Ronney Ncwadi & Andrew Phiri, 2020. "The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(9), pages 1143-1159, July.
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    18. Nusrat Farzana & Md Qamruzzaman & Yeasmin Islam & Piana Monsur Mindia, 2023. "Nexus between Personal Remittances, Financial Deepening, Urbanization, and Renewable Energy Consumption in Selected Southeast Asian Countries: Evidence from Linear and Nonlinear Assessment," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 270-287, November.
    19. Lei Shen & Xi Zhang & Hongda Liu & Pinbo Yao, 2021. "Research on the Economic Development Threshold Effect of the Employment Density of the Shanghai Consumer Goods Industry in the Context of New Manufacturing, Based on the Experience Comparison with Int," Mathematics, MDPI, vol. 9(9), pages 1-19, April.
    20. Thanh Dinh Su & Canh Phuc Nguyen, 2022. "Productive Contribution of Public Spending and Human Capital in Developing Countries Revisited: The Role of Trade Openness," Foreign Trade Review, , vol. 57(1), pages 66-84, February.
    21. Shafaq Salam & Muhammad Hafeez & Muhammad Tariq Mahmood & Kashif Iqbal & Kashifa Akbar, 2019. "The Dynamic Relation between Technology Adoption, Technology Innovation, Human Capital and Economy: Comparison of Lower-Middle-Income Countries," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(1-B), pages 146-161.
    22. Lawal, Adedoyin Isola & Ozturk, Ilhan & Olanipekun, Ifedolapo O. & Asaleye, Abiola John, 2020. "Examining the linkages between electricity consumption and economic growth in African economies," Energy, Elsevier, vol. 208(C).
    23. Sultana, Tanzila & Dey, Sima Rani & Tareque, Mohammad, 2022. "Exploring the linkage between human capital and economic growth: A look at 141 developing and developed countries," Economic Systems, Elsevier, vol. 46(3).

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    More about this item

    Keywords

    Human capital; Schooling; Dynamic threshold model; Panel data analysis; Growth;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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