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Directly unproductive schooling: How country characteristics affect the impact of schooling on growth

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  • Rogers, Mark Llewellyn

Abstract

The rapid rise in schooling in developing countries in recent decades has been dramatic. However, many cross-country regression analyses of the impact of schooling on economic growth find low and insignificant coefficients. This empirical 'puzzle' contrasts with theoretical arguments that schooling, through raising human capital, should raise income levels. This paper argues that poor results are to be expected when regression samples include countries that vary greatly in their ability to use schooling productively. Data on corruption, the black market premium on foreign exchange and the extent of the brain drain for developing countries are used as indicators of an economy's productive use of schooling. Regression analysis shows that the impact of schooling on economic growth is substantially higher in countries that are adjudged to use schooling productively.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 52 (2008)
Issue (Month): 2 (February)
Pages: 356-385

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Handle: RePEc:eee:eecrev:v:52:y:2008:i:2:p:356-385

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Cited by:
  1. Catarina Cardoso & Eric J. Pentecost, 2011. "Human Capital and Spatial Heterogeneity in the Iberian Countries’ Regional Growth and Convergence," Discussion Paper Series 2011_04, Department of Economics, Loughborough University, revised Nov 2011.
  2. Markus Baldauf & J.M.C. Santos Silva, 2009. "On the use of robust regression in econometrics," Economics Discussion Papers 664, University of Essex, Department of Economics.
  3. Michael A. Clemens, 2009. "Skill Flow: A Fundamental Reconsideration of Skilled-Worker Mobility and Development," Human Development Research Papers (2009 to present) HDRP-2009-08, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
  4. M. Niaz Asadullah & Antonio Savoia & Wahiduddin Mahmud, 2013. "Paths to development: is there a Bangladesh surprise?," Brooks World Poverty Institute Working Paper Series 18913, BWPI, The University of Manchester.
  5. Spyridon Koikos, 2013. "Corruption, Public Expenditure, and Human Capital Accumulation," Working Paper Series 17_13, The Rimini Centre for Economic Analysis.
  6. Michael A. Clemens, 2004. "The Long Walk to School: International education goals in historical perspective," Development and Comp Systems 0403007, EconWPA.
  7. Lim, Jamus Jerome & Adams-Kane, Jonathon, 2008. "Institutions, Education, and Economic Performance," MPRA Paper 11800, University Library of Munich, Germany.
  8. Coco, Giuseppe & Lagravinese, Raffaele, 2014. "Cronyism and education performance," Economic Modelling, Elsevier, vol. 38(C), pages 443-450.
  9. Bayraktar, Nihal & Moreno-Dodson, Blanca, 2010. "How can public spending help you grow? an empirical analysis for developing countries," Policy Research Working Paper Series 5367, The World Bank.

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