IDEAS home Printed from https://ideas.repec.org/a/ejn/ejssjr/v10y2022i4p236-251.html

Education and Economic Growth: ıs There a Role for Governance? a Comparison between MENA and OECD Countries

Author

Listed:
  • Mariem Jaafra

    (IHEC Carthage Business School, Tunisia)

  • Houssem Rachd

    (IHEC Carthage Business School, Tunisia IPAG Business School, France)

Abstract

The outcomes of education and growth are mixed. This paper revisits the debate on the impact of education on economic growth by focusing on the effect of governance. Our sample covers 13 countries in the Middle East & North Africa and 37 OECD countries during the period 1990- 2020. For a dynamic panel type model, we preferred the GMM estimation approach in order to appropriately verify the relevance of the supporting indicators. Our objective is to determine whether the effects of education and governance on growth depend on the level of development of the country. Our results show that good governance contributes to economic growth in OECD countries. Strong governance raises the level and quality of education of the population and stimulates growth. The governance system is still being built for the nations of the MENA region, and it has several flaws. These results have important policy implications. Governments in the MENA region must invest more domestic resources in education and raise the standard of their institutions by implementing good governance practices if they want to improve output. Economic performance is possible when the governing principles are applied strictly, severely, and effectively. The advancement of education and the achievement of economic prosperity require efficient governance.

Suggested Citation

  • Mariem Jaafra & Houssem Rachd, 2022. "Education and Economic Growth: ıs There a Role for Governance? a Comparison between MENA and OECD Countries," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 10(4), pages 236-251.
    • Handle: RePEc:ejn:ejssjr:v:10:y:2022:i:4:p:236-251
    as

    Download full text from publisher

    File URL: https://eurasianpublications.com/wp-content/uploads/2023/02/EJSS-10.4.3.1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Jetter, Michael & Parmeter, Christopher F., 2018. "Sorting through global corruption determinants: Institutions and education matter – Not culture," World Development, Elsevier, vol. 109(C), pages 279-294.
    3. Ben Youssef, Adel & Boubaker, Sabri & Omri, Anis, 2018. "Entrepreneurship and sustainability: The need for innovative and institutional solutions," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 232-241.
    4. Li, Tingting & Wang, Yong, 2018. "Growth channels of human capital: A Chinese panel data study," China Economic Review, Elsevier, vol. 51(C), pages 309-322.
    5. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    6. Abdelbary, Islam & Benhin, James, 2019. "Governance, capital and economic growth in the Arab Region," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 184-191.
    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    8. Steve Yaw Sarpong & Murad A. Bein, 2021. "Effects of good governance, sustainable development and aid on quality of life: Evidence from sub‐saharan Africa," African Development Review, African Development Bank, vol. 33(1), pages 25-37, March.
    9. Eric A. Hanushek, 2016. "Will more higher education improve economic growth?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 32(4), pages 538-552.
    10. Bekhet, Hussain Ali & Latif, Nurul Wahilah Abdul, 2018. "The impact of technological innovation and governance institution quality on Malaysia's sustainable growth: Evidence from a dynamic relationship," Technology in Society, Elsevier, vol. 54(C), pages 27-40.
    11. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    12. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    13. Abdelkarim Yahyaoui & Majid Ibrahim Al Saggaf, 2019. "Effects of Financial Development and Institutional Quality on the Economic Growth in The Arabian Gulf states: A Panel Cointegration Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 203-211.
    14. Christopher J. Boudreaux & Randall G. Holcombe, 2018. "Is institutional improvement possible?," Applied Economics Letters, Taylor & Francis Journals, vol. 25(11), pages 758-761, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tung Liu & Kui-Wai Li, 2015. "The Empirics of Economic Growth and Industrialization Using Growth Identity Equation," Working Papers 201501, Ball State University, Department of Economics, revised Jun 2015.
    2. Sheremeta, Roman & Smith, Vernon, 2017. "The Impact of the Reformation on the Economic Development of Western Europe," MPRA Paper 87220, University Library of Munich, Germany.
    3. Mo, Pak Hung, 2011. "Institutions, Entrepreneurship and Channels to Sustained Economic Growth," MPRA Paper 28911, University Library of Munich, Germany.
    4. van de Klundert, T.C.M.J. & Smulders, J.A., 1991. "Reconstructing growth theory : A survey," Other publications TiSEM 19355c51-17eb-4d5d-aa66-b, Tilburg University, School of Economics and Management.
    5. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    6. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries:Does local Economic Conditions Matter?," Economic Development and Well-being Research Group Working Paper Series edwrg-01-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    7. Olusanya, Oluwakorede, 2016. "Causality between Human Resource Development and the Nigerian Economic Performance," MPRA Paper 100854, University Library of Munich, Germany.
    8. Shaukat, Badiea & Zhu, Qigui & Khan, M. Ijaz, 2019. "Real interest rate and economic growth: A statistical exploration for transitory economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 534(C).
    9. Panagiotis Pegkas & Constantinos Tsamadias, 2017. "Are There Separate Effects of Male and Female Higher Education on Economic Growth? Evidence from Greece," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 279-293, March.
    10. Patrik Hultberg & David Santandreu Calonge & Seong-Hee Kim, 2017. "Education policy in South Korea: A contemporary model of human capital accumulation?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1389804-138, January.
    11. Miketa, Asami & Mulder, Peter, 2005. "Energy productivity across developed and developing countries in 10 manufacturing sectors: Patterns of growth and convergence," Energy Economics, Elsevier, vol. 27(3), pages 429-453, May.
    12. Asongu, Simplice & Boateng, Agyenim & Akamavi, Raphael, 2016. "Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa," MPRA Paper 75046, University Library of Munich, Germany.
    13. Zhang, Xiaobei & Wang, Xiaojun, 2021. "Measures of human capital and the mechanics of economic growth," China Economic Review, Elsevier, vol. 68(C).
    14. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.
    15. repec:eur:ejesjr:364 is not listed on IDEAS
    16. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    17. Kerekes, Monika, 2007. "Analyzing patterns of economic growth: a production frontier approach," Discussion Papers 2007/15, Free University Berlin, School of Business & Economics.
    18. Cutrini, Eleonora & Mendez, Carlos, 2023. "Convergence clubs and spatial structural change in the European Union," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 167-181.
    19. Onafowora, Olugbenga A. & Owoye, Oluwole, 2024. "Trade openness, governance quality, and economic growth in Latin America and the Caribbean," International Economics, Elsevier, vol. 179(C).
    20. Mariusz Próchniak & Bartosz Witkowski, 2006. "Modelowanie realnej konwergencji w skali międzynarodowej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 1-31.
    21. Arano, Kathleen G. & Srinivasan, Arun K., 2021. "Local Economies and Economic Growth, Does Location Matter? A Spatial Analysis in the Great Lakes Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(01), June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ejn:ejssjr:v:10:y:2022:i:4:p:236-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Esra Barakli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.