IDEAS home Printed from https://ideas.repec.org/a/sek/jijoes/v5y2016i2p22-41.html
   My bibliography  Save this article

The contribution of education to economic growth: Evidence from Nepal

Author

Listed:
  • A. Z. Nowak

    (University of Warsaw)

  • Gangadhar Dahal

    (Faculty of management, University of Warsaw)

Abstract

This paper investigates the long run relationship between education and economic growth in Nepal between 1995 and 2013 through application of Johansen Cointegration technique and OLS. The results from OLS show that secondary and higher education contributes significantly to the Real GDP Per Capita in Nepal. The elementary education also positively influences economic growth but the results are statistically less significant. The cointegration test results confirmed the existence of long run relationship in education (a well-educated human capital) and Real GDP Per Capita. It is therefore, suggested to keep education on top priority in public policies, make serious efforts for Universalization of Primary Education and discourage the drop-out rate at all levels of education to achieve sustained economic growth.

Suggested Citation

  • A. Z. Nowak & Gangadhar Dahal, 2016. "The contribution of education to economic growth: Evidence from Nepal," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(2), pages 22-41, June.
    • Handle: RePEc:sek:jijoes:v:5:y:2016:i:2:p:22-41
    as

    Download full text from publisher

    File URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-760
    Download Restriction: no
    File URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-760?download=2
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bharat Diwakar & Gilad Sorek, 2015. "Economic Development and Stage-Dependent IPR," Auburn Economics Working Paper Series auwp2015-16, Department of Economics, Auburn University.
    2. Yong Jin Kim & Akiko Terada-Hagiwara, 2013. "A Survey On The Relationship Between Education And Growth With Implications For Developing Asia," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-21.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    4. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    5. Abbas, Qaisar & Foreman-Peck, James, 2007. "The Mincer Human Capital Model in Pakistan: Implications for Education Policy," Cardiff Economics Working Papers E2007/24, Cardiff University, Cardiff Business School, Economics Section.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Batara Surya & Syafri Syafri & Hernita Sahban & Harry Hardian Sakti, 2020. "Natural Resource Conservation Based on Community Economic Empowerment: Perspectives on Watershed Management and Slum Settlements in Makassar City, South Sulawesi, Indonesia," Land, MDPI, vol. 9(4), pages 1-31, March.
    2. Syamsurijal Abdul Kadir & Azwardi & Rulyanti Susi Wardhani & Nurkardina Novalia & Ahmad Maulana, 2018. "The Impact of Physical and Human Capital on the Economic Growth of Agricultural Sector in South Sumatera," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 322-326.
    3. Diana Toimbek, 2022. "Problems and Perspectives of Transition to the Knowledge-Based Economy in Kazakhstan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1088-1125, June.
    4. Luxolo Malangeni & Andrew Phiri, 2018. "Education and Economic Growth in Post-apartheid South Africa: An Autoregressive Distributive Lag Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 101-107.
    5. Fairuzah Pertiwi Kartasasmita & Eny Sulistyaningrum, 2021. "The Impact of School Operational Assistance Program Implementation at School Level on Senior Secondary Education Enrollment by Households: Evidence from Indonesia in 2007 and 2014," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 67, pages 163-182, Desember.
    6. Kiran Zahra & Mudassar Yasin & Baserat Sultana & Zulqarnain Haider & Raheela Khatoon, 2021. "Impact of Women Education on Economic Growth: An Evidence from Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 3(2), pages 113-120.
    7. Batara Surya & Syafri Syafri & Hadijah Hadijah & Baharuddin Baharuddin & Andi Tenri Fitriyah & Harry Hardian Sakti, 2020. "Management of Slum-Based Urban Farming and Economic Empowerment of the Community of Makassar City, South Sulawesi, Indonesia," Sustainability, MDPI, vol. 12(18), pages 1-42, September.
    8. Simona Andreea Apostu & Lindita Mukli & Mirela Panait & Iza Gigauri & Eglantina Hysa, 2022. "Economic Growth through the Lenses of Education, Entrepreneurship, and Innovation," Administrative Sciences, MDPI, vol. 12(3), pages 1-14, June.
    9. Luxolo Malangeni & Andrew Phiri, 2017. "Education and economic growth in post-Apartheid South Africa," Working Papers 1716, Department of Economics, Nelson Mandela University, revised Dec 2017.
    10. Marco Marto & João Lourenço Marques & Mara Madaleno, 2022. "An Evaluation of the Efficiency of Tertiary Education in the Explanation of the Performance of GDP per Capita Applying Data Envelopment Analysis (DEA)," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    11. Sieng, Lai Wei & Yussof, Ishak, 2018. "Impact of Higher Education on Income and Economic Growth: A Cross Country Evidence," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 189-198.
    12. Chaohai Shen & Tong Sheng & Xingheng Shi & Bingquan Fang & Xiaoqian Lu & Xiaolan Zhou, 2022. "The Relationship between Housing Price, Teacher Salary Improvement, and Sustainable Regional Economic Development," Land, MDPI, vol. 11(12), pages 1-21, December.
    13. Kauano, Érico Emed & Silva, José Maria Cardoso & Diniz Filho, José Alexandre Felizola & Michalski, Fernanda, 2020. "Do protected areas hamper economic development of the Amazon region? An analysis of the relationship between protected areas and the economic growth of Brazilian Amazon municipalities," Land Use Policy, Elsevier, vol. 92(C).
    14. Malangeni, Luxolo & Phiri, Andrew, 2017. "Education and economic growth in post-Apartheid South Africa: An ARDL approach," MPRA Paper 83017, University Library of Munich, Germany.
    15. Ejiro U. Osiobe, 2019. "A Literature Review of Human Capital and Economic Growth," Business and Economic Research, Macrothink Institute, vol. 9(4), pages 179-196, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koopman, Eline & Wacker, Konstantin M., 2023. "Drivers of growth accelerations: What role for capital accumulation?," World Development, Elsevier, vol. 169(C).
    2. Ejiro U. Osiobe, 2019. "A Literature Review of Human Capital and Economic Growth," Business and Economic Research, Macrothink Institute, vol. 9(4), pages 179-196, December.
    3. Rao, B. Bhaskara, 2010. "Estimates of the steady state growth rates for selected Asian countries with an extended Solow model," Economic Modelling, Elsevier, vol. 27(1), pages 46-53, January.
    4. repec:zbw:rwidps:0030 is not listed on IDEAS
    5. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(3), pages 237-270, September.
    6. Kar, Sabyasachi & Pritchett, Lant & Raihan, Selim & Sen, Kunal, 2013. "Looking for a break: Identifying transitions in growth regimes," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 151-166.
    7. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    8. van de Klundert, T.C.M.J. & Smulders, J.A., 1991. "Reconstructing growth theory : A survey," Other publications TiSEM 19355c51-17eb-4d5d-aa66-b, Tilburg University, School of Economics and Management.
    9. Antonio Ciccone & Giovanni Peri & Douglas Almond, "undated". "Capital, Wages, and Growth: Theory and Evidence," Working Papers 152, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    10. Johannes W. Fedderke & John M. Luiz, 2005. "Does Human Generate Social and Institutional Capital? Exploring Evidence From Time Series Data in a Middle Income Country," Working Papers 029, Economic Research Southern Africa.
    11. Aysit Tansel & Nil Demet Güngör, 2016. "Gender Effects of Education on Economic Development in Turkey," World Scientific Book Chapters, in: Nadereh Chamlou & Massoud Karshenas (ed.), Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies, chapter 3, pages 57-86, World Scientific Publishing Co. Pte. Ltd..
    12. Ahmet Faruk Aysan & …mer Faruk Baykal & Marie-Ange Véganzonès–Varoudakis, 2011. "The Effects of Convergence in Governance on Capital Accumulation in the Black Sea Economic Cooperation Countries," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 6, Edward Elgar Publishing.
    13. Günther Rehme, 2007. "Education, Economic Growth and Measured Income Inequality," Economica, London School of Economics and Political Science, vol. 74(295), pages 493-514, August.
    14. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 1996. "The Poverty of Nations: A Quantitative Exploration," NBER Working Papers 5414, National Bureau of Economic Research, Inc.
    15. Andersson, Fredrik N.G. & Edgerton, David L. & Opper, Sonja, 2013. "A Matter of Time: Revisiting Growth Convergence in China," World Development, Elsevier, vol. 45(C), pages 239-251.
    16. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries:Does local Economic Conditions Matter?," Economic Development and Well-being Research Group Working Paper Series edwrg-01-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    17. Ahmet Faruk AYSAN & Mustapha Kamel NABLI & Marie‐Ange VÉGANZONÈS‐VAROUDAKIS, 2007. "Governance Institutions And Private Investment: An Application To The Middle East And North Africa," The Developing Economies, Institute of Developing Economies, vol. 45(3), pages 339-377, September.
    18. Mihály Borsi & Norbert Metiu, 2015. "The evolution of economic convergence in the European Union," Empirical Economics, Springer, vol. 48(2), pages 657-681, March.
    19. Areendam Chanda & Beatrice Farkas, 2009. "Technology-Skill Complementarity and International TFP Differences," DEGIT Conference Papers c014_028, DEGIT, Dynamics, Economic Growth, and International Trade.
    20. Olusanya, Oluwakorede, 2016. "Causality between Human Resource Development and the Nigerian Economic Performance," MPRA Paper 100854, University Library of Munich, Germany.
    21. B. Bhaskara Rao & Arusha Cooray, 2012. "How useful is growth literature for policies in the developing countries?," Applied Economics, Taylor & Francis Journals, vol. 44(6), pages 671-681, February.

    More about this item

    Keywords

    Education; Economic growth; Ordinary Least Squares (OLS);
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:jijoes:v:5:y:2016:i:2:p:22-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://ijoes.iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.