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The Role of Education in Economic Growth in East Asia: a survey

  • Risti Permani

This paper surveys the literature on the links between education and economic growth in East Asia. It finds that education is important for economic growth but it is not a sufficient condition. The complementarity between education and other factors in enhancing productivity and efficiency is commonly seen as the driving force of economic growth. However, the empirical evidence is ambiguous due to econometric problems. Statistical analysis suggests that education and economic growth in East Asia have two-way causality. Nevertheless, valuing education has been a widely-accepted part of Asian values. As a result, education consistently presents as a significant income determinant and consequentially a growth factor, regardless of whether education can increase productivity. East Asian education systems are also formed and extended in close relation to the stages of their economic development: the higher the level of economic development, the greater the demand for better and higher education systems. Copyright © 2009 The Author. Journal compilation © 2009 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd.

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Article provided by Asia Pacific School of Economics and Government, The Australian National University in its journal Asian-Pacific Economic Literature.

Volume (Year): 23 (2009)
Issue (Month): 1 (05)
Pages: 1-20

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Handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:1-20
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