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Education and Economic Growth: an Empirical Analysis of Interdependencies and Impacts Based on Panel Data

Author

Listed:
  • Liana SON

    (Faculty of Economics and Business Administration, West University of Timisoara, Romania)

  • Graţiela Georgiana NOJA

    (Faculty of Economics and Business Administration, West University of Timisoara, Romania)

  • Mihai RITIVOIU

    (Faculty of Economics and Business Administration, West University of Timisoara, Romania)

  • Roxana TOLTEANU

    (Faculty of Economics and Business Administration, West University of Timisoara, Romania)

Abstract

The paper focuses particularly on proving that education can lead to economic growth within five groups of EU Member States. Our study reviews the human capital from its quantitative (years of study) and qualitative (education quality) dimensions, the empirical panel data analysis being based on three double-log models developed and processed through random and fixed effects. The main explanatory variables comprise the GDP per capita, the physical capital, the average number of years of schooling (for all three levels, especially tertiary education), the quality of education measured through scores on skill tests, the degree of international openness, life expectancy and inflation rate. Our results highlight that education is extremely important in positively influencing economic growth. Within this framework, the results emphasize that within the European Union there is a strong positive influence of education on economic growth, expressed mainly through an increase in GDP per capita growth rate, especially when the human capital is expressed by qualitative variables, while the quantitative variable’s importance is being greatly reduced.

Suggested Citation

  • Liana SON & Graţiela Georgiana NOJA & Mihai RITIVOIU & Roxana TOLTEANU, 2013. "Education and Economic Growth: an Empirical Analysis of Interdependencies and Impacts Based on Panel Data," Timisoara Journal of Economics and Business, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 6(19), pages 39-54.
    • Handle: RePEc:wun:timjeb:tjeb:v06:y2013:i19:a03
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    References listed on IDEAS

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    Cited by:

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    2. Piotr Misztal, 2021. "Sustainable Development and Quality of Life in Poland Compared to other OECD Member Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 663-675.
    3. Abdalali Monsef & Abolfazl Shahmohammadi Mehrjardi, 2015. "Investigation Development Degree of Esfahan Province of Iran in Terms of Educational Indices," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 5(1), pages 37-44, January.
    4. Desislava Yordanova & Jose António Filipe, 2018. "Desirability of Technology Entrepreneurship among Bulgarian STEM Students: The Role of Entrepreneurship Education," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 446-462.
    5. Kunofiwa Tsaurai & Bester Chimbo, 2020. "Technology, Poverty, and Education within the BRICS’ Context," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 471-487.
    6. Hussein-Elhakim Al Issa, 2020. "The Influence of Education and Environmental Support on Entrepreneurial Intentions," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 946-965.
    7. Hüseyin Taştan & Selin Erdoğan, 2018. "Cognitive skills and economic performance: evidence from the recent international student assessment tests," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(3), pages 417-449, December.

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    More about this item

    Keywords

    Human capital; economic growth; education; schooling; knowledge.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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