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The Impact of Government Expenditure and Tertiary Education on High-Technology Exports: Evidence from Asia-Pacific and European Nations

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  • Nguyen, Hieu Thi Thanh
  • Pham, My Hoang Ngoc
  • Nguyen, Thu Thi
  • Duong, Khoa Dang

Abstract

This study extends the growing literature on the 4th and 9th Sustainable Development Goals by examining whether tertiary education moderates the relationship between government spending on education and high-technology exports. We employ Robust Least Squares Estimation to analyze an unbalanced panel of 24 Asia-Pacific countries and 37 European nations from 2007 to 2022. This method effectively handles outliers and heteroskedasticity in panel estimations. The empirical results indicate that both a higher ratio of tertiary education enrollment and government expenditure empower high-technology exports. Our findings support human capital, innovation, and endogenous growth theories, as well as prior literature. However, the study reveals significant regional disparities in the impact of education on high-technology exports. While higher tertiary enrollment boosts high-tech exports in Asia-Pacific countries, government spending has little impact. Conversely, in European countries, government spending positively influences high-tech exports, while tertiary enrollment shows no significant effect. This study contributes practical policy implications for sustainably improving high-technology exports in Asia-Pacific and European nations by fostering human capital development and efficient government spending on education.

Suggested Citation

  • Nguyen, Hieu Thi Thanh & Pham, My Hoang Ngoc & Nguyen, Thu Thi & Duong, Khoa Dang, . "The Impact of Government Expenditure and Tertiary Education on High-Technology Exports: Evidence from Asia-Pacific and European Nations," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 31(2).
    • Handle: RePEc:ags:thkase:356818
    DOI: 10.22004/ag.econ.356818
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    References listed on IDEAS

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    2. Ai Ngoc Nhan Le & Ha Pham & Dung Thi Ngoc Pham & Khoa Dang Duong, 2023. "Political stability and foreign direct investment inflows in 25 Asia-Pacific countries: the moderating role of trade openness," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    4. Gustavo Crespi & Ezequiel Tacsir & Mariano Pereira, 2019. "Effects of innovation on employment in Latin America," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(1), pages 139-159.
    5. Alberto Posso, 2011. "Government expenditure on education and enrolment rates in Indonesia in the new millennium: an East Asian perspective," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(2), pages 233-240.
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    8. Edinaldo Tebaldi, 2011. "The Determinants of High-Technology Exports: A Panel Data Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(4), pages 343-353, December.
    9. Jesús Peña-Vinces & David Audretsch, 2021. "Tertiary education and science as drivers of high-technology exporting firms growth in developing countries," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1734-1757, December.
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