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The Role of Schooling in Struggling with the Middle-Income Trap: Dynamic Panel Data Analysis

Author

Listed:
  • Umit BULUT
  • Ahsen Seda BULUT

    (Ahi Evran University, Turkey)

Abstract

This paper aims at examining the relationship between average years of total schooling and GDP per capita for six middle-income countries over the period 1950-2010. To this end, the paper employs panel FMOLS and panel DOLS estimators and panel Granger causality test based on vector error correction model. According to the output from estimations, GDP per capita is positively related to average years of total schooling and there is a bidirectional causality between variables. In conclusion, the paper argues that average years of schooling of people should be increased to struggle with the middle-income trap.

Suggested Citation

  • Umit BULUT & Ahsen Seda BULUT, 2015. "The Role of Schooling in Struggling with the Middle-Income Trap: Dynamic Panel Data Analysis," Journal of Social and Administrative Sciences, EconSciences Journals, vol. 2(4), pages 205-215, December.
    • Handle: RePEc:cvv:journ4:v:2:y:2015:i:4:p:205-215
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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