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Higher Education and Economic Growth. A Comparison between Czech Republic and Romania

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  • Bogdan Oancea
  • Richard Pospíšil
  • Raluca Mariana Drăgoescu

Abstract

Although there is a strong theoretical framework for the economic growth and its relationship with education, the empirical evidence of this relationship is rather scarce. In this paper we investigated the causality and the long-run relationship between economic growth and higher education in the Czech Republic and Romania, using data series for 1980-2013 period. We used a VECM to analyse the long-run relationship between higher education and economic growth and Granger methodology to test the causality between variables. The results showed that higher education has an important positive effect on economic growth, although the impact level of the higher education on economic growth is different in the two countries. We also showed that there is a causality relationship that goes from higher education to economic growth for both countries.

Suggested Citation

  • Bogdan Oancea & Richard Pospíšil & Raluca Mariana Drăgoescu, 2017. "Higher Education and Economic Growth. A Comparison between Czech Republic and Romania," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(4), pages 467-486.
    • Handle: RePEc:prg:jnlpep:v:2017:y:2017:i:4:id:622:p:467-486
    DOI: 10.18267/j.pep.622
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    2. Filip Hruza & Stanislav Volcík & Jan Žácek, 2019. "The Impact of EU Funds on Regional Economic Growth of the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(1), pages 76-94, February.
    3. Wang, Dong & Wang, Ziwei & Zong, Xiaohua, 2023. "Impact of economic policy uncertainty on higher education expansion," Finance Research Letters, Elsevier, vol. 52(C).
    4. Baozhong Li & Chengxuan Kang, 2025. "Research on the Contribution of Higher Education to the Sustainable Development of the Economy in China: An Empirical Analysis Based on Provincial Panel Data from 2014 to 2023," Sustainability, MDPI, vol. 17(3), pages 1-17, January.
    5. Nicholas M. Odhiambo, 2020. "Education and economic growth in South Africa: an empirical investigation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 48(1), pages 1-16, November.
    6. Adeeba Sarwar & Muhammad Azmat Hayat, 2021. "A Nexus among Institutions, Education and Economic Growth: An Analysis of Developing Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(1), pages 30-42, January.
    7. Bao Bing, 2023. "The impact of higher education on high quality economic development in China: A digital perspective," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-17, August.
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    9. Sorin Tudor & Teodor Florin Cilan & Luiza Loredana Năstase & Mihaela Loredana Ecobici & Elena Rodica Opran & Andrei Valentin Cojocaru, 2023. "Evolution of Interdependencies between Education and the Labor Market in the View of Sustainable Development and Investment in the Educational System," Sustainability, MDPI, vol. 15(5), pages 1-24, February.

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    Keywords

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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