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The Social Outcomes of Education and Feedbacks on Growth in Africa

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  • E. N. Appiah
  • W. W. McMahon
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    Abstract

    Most of the effects of education included in the complete model presented here are shown to be consistent with those found in the mainstream of the research on each outcome using microeconomic data. This, however, is a first effort to estimate net education effects more comprehensively, beyond just growth and health effects on other key measures of development in Africa, and also a new view of indirect feedbacks on economic growth and of externalities. After developing the conceptual framework, the regression estimates are presented together with a discussion of the net direct and indirect effects of education on each outcome. These are shown to improve infant mortality, increase longevity, strengthen civic institutions and democratisation, increase political stability, and increase investment in physical capital, which in turn have positive delayed feedback effects on the economic growth process. The effects also lower fertility rates and population growth rates but the latter occurs only after long delays because of the short-term positive effects of education on health. There are significant net education effects reducing poverty, inequality and crime, the latter after netting out negative externalities from growth and white-collar crime. Education effects reducing poverty and substituting skills for extractive exports also contribute to environmental sustainability. Simulations solve the complete model endogenously and iteratively over time for all of the direct and indirect (largely externality) effects. They reveal that indirect feedback effects including those on non-market outcomes are larger than the direct effects. Some effects are immediate, but many of the lags are long. So policy options for a continent in crisis that consider these lags are considered.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

    Volume (Year): 38 (2002)
    Issue (Month): 4 ()
    Pages: 27-68

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    Handle: RePEc:taf:jdevst:v:38:y:2002:i:4:p:27-68

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    Related research

    Keywords: education; social outcomes; microeconomic data; regression estimates;

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    Cited by:
    1. Oketch, Moses O., 2006. "Determinants of human capital formation and economic growth of African countries," Economics of Education Review, Elsevier, vol. 25(5), pages 554-564, October.
    2. Warunsiri, Sasiwimon & McNown, Robert, 2010. "The Returns to Education in Thailand: A Pseudo-Panel Approach," World Development, Elsevier, vol. 38(11), pages 1616-1625, November.
    3. Benos, Nikos & Zotou, Stefania, 2013. "Education and Economic Growth: A Meta-Regression Analysis," MPRA Paper 46143, University Library of Munich, Germany.
    4. Stephan Klasen & Francesca Lamanna, 2008. "The Impact of Gender Inequality in Education and Employment on Economic Growth in Developing Countries: Updates and Extensions," Ibero America Institute for Econ. Research (IAI) Discussion Papers 175, Ibero-America Institute for Economic Research.
    5. Elizabeth Asiedu & Boaz Nandwa, 2007. "On the Impact of Foreign Aid in Education on Growth: How Relevant Is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(4), pages 631-649, December.
    6. Abu-Ghaida, Dina & Klasen, Stephan, 2004. "The Costs of Missing the Millennium Development Goal on Gender Equity," IZA Discussion Papers 1031, Institute for the Study of Labor (IZA).
    7. World Bank, 2012. "A Gender (R)evolution in the Making? Expanding Women's Economic Opportunities in Central America : A Decade in Review," World Bank Other Operational Studies 12468, The World Bank.
    8. Erreygers G. & Ferede T., 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Applied Economics.
    9. Chani, Muhammad Irfan & Hassan, Mahboob Ul & Shahid, Muhammad, 2012. "Human capital formation and economic development in Pakistan: an empirical analysis," MPRA Paper 38925, University Library of Munich, Germany.
    10. Wokia-azi N. Kumase & Herve Bisseleua & Stephan Klasen, 2010. "Opportunities and constraints in agriculture: A gendered analysis of cocoa production in Southern Cameroon," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 27, Courant Research Centre PEG.
    11. Herbst, Mikolaj & Rok, Jakub, 2013. "Mobility of human capital and its effect on regional economic development. Review of theory and empirical literature," MPRA Paper 45755, University Library of Munich, Germany.
    12. Anwar, Mumtaz & Rashid, Muhammad Khalid, 2011. "Effectiveness of foreign aid in the light of millennium development goal on the education sector: a case study of Pakistan," MPRA Paper 37141, University Library of Munich, Germany.

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