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

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  • Risti Permani

Abstract

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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  • Risti Permani, 2009. "The Role of Education in Economic Growth in East Asia: a survey," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 1-20, May.
    • Handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:1-20
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    2. Biswajit Maitra & C.K. Mukhopadhyay, 2012. "Public spending on education, health care and economic growth in selected countries of Asia and the Pacific," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 19-48, December.
    3. Thi Hoai Trinh NGUYEN & Claudiu CICEA, 2020. "Investment In Higher Education And Economic Development In East Asia," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 421-435, November.
    4. Abhijeet, Chandra, 2010. "Does Government Expenditure on Education Promote Economic Growth? An Econometric Analysis," MPRA Paper 25480, University Library of Munich, Germany.
    5. Núñez Rodríguez, Gaspar & Romero Tellaeche, José Antonio, 2020. "Nationalism and development: an alternative for Mexico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Maja Nikšić Radić & Hana Paleka, 2020. "Higher Education Funding and Economic Growth: Empirical Evidence from Croatia," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(3), pages 409-421, September.
    7. Diana Barros (a) Aurora A.C. Teixeira (b), 2021. "A Portrait of Development Economics in the Last Sixty Years," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 46(2), pages 69-118, June.
    8. Douanla Tayo, Lionel & Abomo Fouda, Marcel Olivier, 2015. "Government spending in education and economic growth in Cameroon:a Vector error Correction Model approach," MPRA Paper 62008, University Library of Munich, Germany.

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