The long-run Relationship between Human Capital and Economic Growth in Sweden
AbstractThe relationship between education and economic growth has been one of the fundamental themes of economic analysis. Despite the growing interest in the relationship between growth and education, and despite the strong theoretical foundations for a key role of education/human capital in economic growth, the empirical evidences, particularly those using causality analyses, are fragile at best. By utilizing the recently developed series of human capital, this paper examined the causal relationship between human capital and economic growth for Sweden over the period 1870-2000. The result from the Granger causality test shows that there is bidirectional causality running from human capital to output per worker and vice versa. Moreover, using vector error correction model, the paper shows that human capital has a significant positive impact on economic growth in Sweden.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 45183.
Date of creation: Mar 2013
Date of revision:
education; human capital; economic growth;
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-EDU-2013-03-30 (Education)
- NEP-FDG-2013-03-30 (Financial Development & Growth)
- NEP-HRM-2013-03-30 (Human Capital & Human Resource Management)
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