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Effects of schooling levels on economic growth: time-series evidence from Guatemala

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  • Loening, Josef
  • Rao, B. Bhaskara
  • Singh, Rup

Abstract

This paper examines the determinants of economic growth in Guatemala, with a particular focus on the schooling level. Results based on an error-correction methodology show a better educated labour force has a positive and significant impact on economic growth. Consistent with micro evidence for Guatemala, primary education is more important than secondary and tertiary education. These findings are robust while changing the conditioning variables, controlling for data issues and endogeneity. Due to social and political conflict, the average per capita growth rate in Guatemala has been low.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25105.

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Date of creation: 16 Aug 2010
Date of revision: 16 Sep 2010
Handle: RePEc:pra:mprapa:25105

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Keywords: Economic growth; education; error-correction model; Guatemala;

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  1. Chris Papageorgiou, 2003. "Distinguishing Between the Effects of Primary and Post-primary Education on Economic Growth," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 7(4), pages 622-635, November.
  2. Josef L. Loening, 2004. "Time series evidence on education and growth: the case of Guatemala, 1951-2002," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 19(2), pages 3-40, December.
  3. Cohen, Daniel & Soto, Marcelo, 2001. "Growth and Human Capital: Good Data, Good Results," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3025, C.E.P.R. Discussion Papers.
  4. Funkhouser, Edward, 1997. "Demand-Side and Supply-Side Explanations for Barriers to Labor Market Mobility in Developing Countries: The Case of Guatemala," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 45(2), pages 341-66, January.
  5. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers, Center for International Development at Harvard University 42, Center for International Development at Harvard University.
  6. Reitschuler, Gerhard & Loening, Josef L., 2005. "Modeling the Defense-Growth Nexus in Guatemala," World Development, Elsevier, Elsevier, vol. 33(3), pages 513-526, March.
  7. Rao, B. Bhaskara & Singh, Rup & Kumar, Saten, 2008. "Do we need time series econometrics?," MPRA Paper 6627, University Library of Munich, Germany.
  8. Jong-Wha Lee, 1994. "Capital Goods Imports and Long-Run Growth," NBER Working Papers 4725, National Bureau of Economic Research, Inc.
  9. Andrea Bassanini & Stefano Scarpetta, 2001. "Does Human Capital Matter for Growth in OECD Countries?: Evidence from Pooled Mean-Group Estimates," OECD Economics Department Working Papers 282, OECD Publishing.
  10. Petrakis, P. E. & Stamatakis, D., 2002. "Growth and educational levels: a comparative analysis," Economics of Education Review, Elsevier, Elsevier, vol. 21(5), pages 513-521, October.
  11. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 17(2), pages 157-200, 04.
  12. Norman Gemmell,, . "Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence," Discussion Papers 95/17, University of Nottingham, CREDIT.
  13. Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
  14. Larraín B., Felipe, 2006. "Guatemala: Los desafíos del crecimiento," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(291), pages 481-538, julio-sep.
  15. Chamarbagwala, Rubiana & Morán, Hilcías E., 2011. "The human capital consequences of civil war: Evidence from Guatemala," Journal of Development Economics, Elsevier, Elsevier, vol. 94(1), pages 41-61, January.
  16. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 407-37, May.
  17. World Bank, 2003. "Poverty in Guatemala," World Bank Other Operational Studies 14862, The World Bank.
  18. Armando Méndez Morales, 1998. "Determinants of Growth in an Error," IMF Working Papers 98/104, International Monetary Fund.
  19. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 90(5), pages 1160-1183, December.
  20. Nehru, Vikram & Dhareshwar, Ashok & DEC, 1994. "New estimates of total factor productivity growth for developing and industrial countries," Policy Research Working Paper Series 1313, The World Bank.
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