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Educational stock and economic growth The case of Greece over the period 1981-2009

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  • Panagiotis Pegkas

    (Harokopio University, Department of Home Economics and Ecology, Athens, Greece)

Abstract

This paper examines the impact of education on economic growth in Greece over the period 1981 – 2009 by applying the model with two sectors introduced by Lucas (1988). The findings of the empirical analysis reveal that there is no long-run relation between educational stock and output. In the short run educational stock has had a statistically insignificant negative effect on economic growth. The econometric model explained 64% up to 72% of the variation of the economic growth rate through the variation of the independent variables. By checking the assumption of scale returns of the model, the results showed that the human capital stock grows but at a decreasing rate, so the endogenous character of the economic growth is not verified.

Suggested Citation

  • Panagiotis Pegkas, 2012. "Educational stock and economic growth The case of Greece over the period 1981-2009," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 62(1-2), pages 56-71, January -.
    • Handle: RePEc:spd:journl:v:62:y:2012:i:1-2:p:56-71
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    References listed on IDEAS

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    Cited by:

    1. Panagiotis Pegkas & Constantinos Tsamadias, 2014. "Does Higher Education Affect Economic Growth? The Case of Greece," International Economic Journal, Taylor & Francis Journals, vol. 28(3), pages 425-444, September.
    2. Panagiotis PEGKAS & Constantinos TSAMADIAS, 2015. "Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 9-32, June.

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    More about this item

    Keywords

    Economic growth; Education; Human capital; Greece; Cointegration; Lucas model;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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