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What level of education matters most for growth?: Evidence from Portugal


  • Pereira, João
  • St. Aubyn, Miguel


We decompose annual average years of schooling series for Portugal into different schooling levels series. By estimating a number of vector autoregressions, we provide measures of aggregate and disaggregate economic growth impacts of different education levels. Increasing education at all levels except tertiary have a positive and significant effect on growth. Investment in education does not significantly crowd out physical investment and average years of schooling semi-elasticities have comparable magnitude across primary and secondary levels.

Suggested Citation

  • Pereira, João & St. Aubyn, Miguel, 2009. "What level of education matters most for growth?: Evidence from Portugal," Economics of Education Review, Elsevier, vol. 28(1), pages 67-73, February.
  • Handle: RePEc:eee:ecoedu:v:28:y:2009:i:1:p:67-73

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    Cited by:

    1. Gazi Mainul Hassan & Arusha Cooray, 2013. "Effects of Male and Female Education on Economic Growth: Some Evidence from Asia Using the Extreme Bounds Analysis," Working Papers in Economics 13/10, University of Waikato.
    2. Mariya Neycheva, 2016. "Secondary versus higher education for growth: the case of three countries with different human capital’s structure and quality," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2367-2393, November.
    3. Herbst, Mikolaj & Wójcik, Piotr, 2011. "Growth and divergence of the polish subregions over 1995–2006: a search for determinants and spatial patterns," MPRA Paper 34731, University Library of Munich, Germany.
    4. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.
    5. Panagiotis PEGKAS & Constantinos TSAMADIAS, 2015. "Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 9-32, June.
    6. Marta Simões & Adelaide Duarte, 2007. "Education and growth: an industry-level analysis of the Portuguese manufacturing," GEMF Working Papers 2007-03, GEMF, Faculty of Economics, University of Coimbra.
    7. Hassan, Gazi & Cooray, Arusha, 2015. "Effects of male and female education on economic growth: Some evidence from Asia," Journal of Asian Economics, Elsevier, vol. 36(C), pages 97-109.
    8. repec:spr:jknowl:v:8:y:2017:i:1:d:10.1007_s13132-015-0286-z is not listed on IDEAS
    9. Agasisti, Tommaso & Gralka, Sabine, 2017. "The transient and persistent efficiency of Italian and German universities: A stochastic frontier analysis," CEPIE Working Papers 14/17, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    10. Teixeira, Aurora A.C. & Fortuna, Natércia, 2010. "Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," Research Policy, Elsevier, vol. 39(3), pages 335-350, April.
    11. Benos, Nikos & Karagiannis, Stelios, 2013. "Do Cross-Section Dependence and Parameter Heterogeneity Matter? Evidence on Human Capital and Productivity in Greece," MPRA Paper 53326, University Library of Munich, Germany.
    12. Benos, Nikos & Karagiannis, Stelios, 2016. "Do education quality and spillovers matter? Evidence on human capital and productivity in Greece," Economic Modelling, Elsevier, vol. 54(C), pages 563-573.
    13. Mariya Neycheva, 2013. "Does higher level of education of the labor force cause growth? Evidence from Bulgaria," Economic Change and Restructuring, Springer, vol. 46(3), pages 321-339, August.
    14. Sara Corujo & Marta Simões, 2012. "Democracy and Growth: Evidence for Portugal (1960–2001)," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(3), pages 512-528, March.
    15. Miettinen Marika Rosanna & Littunen Hannu, 2013. "Factors Contributing to the Success of Start-Up Firms Using Two-Point or Multiple-Point Scale Models," Entrepreneurship Research Journal, De Gruyter, vol. 3(4), pages 449-481, June.
    16. Bahar Bayraktar-Sağlam, 2016. "The Stages of Human Capital and Economic Growth: Does the Direction of Causality Matter for the Rich and the Poor?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 243-302, May.
    17. João Sousa Andrade & Adelaide Duarte & Marta Simões, 2011. "Inequality and Growth in Portugal: a time series analysis," GEMF Working Papers 2011-11, GEMF, Faculty of Economics, University of Coimbra.
    18. Marta C. N. Simões, 2011. "Education Composition and Growth: A Pooled Mean Group Analysis of OECD Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 455-471, December.
    19. Lodhi, Abdul Salam & Tsegai, Daniel W. & Gerber, Nicolas, 2011. "Determinants of participation in child’s education and alternative activities in Pakistan," Discussion Papers 119110, University of Bonn, Center for Development Research (ZEF).
    20. Catarina Cardoso & Eric J. Pentecost, 2011. "Regional Growth and Convergence: The Role of Human Capital in the Portuguese Regions," Discussion Paper Series 2011_03, Department of Economics, Loughborough University, revised Sep 2011.

    More about this item


    Economic impact Economic development Human capital Productivity;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe


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