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Revisiting Linkages between Openness, Education and Economic Growth: System GMM Approach

Author

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  • Fukase, Emiko

    () (The Graduate Center, the City University of New York)

Abstract

For 106 countries over 1969-2004, this paper revisits the relationship between openness, education and economic growth using the System Generalized Method of Moment (GMM) approach. Trade and growth are usually positively correlated and capital formation appears to be an important channel through which trade brings growth. There generally exists a positive relationship between FDI inflow and economic growth for a subset of non-OECD countries. The System GMM estimator improves substantially the estimate of the impact of education on growth relative to the models which focus on within-country changes in education, adding information on cross-country variation in education levels.

Suggested Citation

  • Fukase, Emiko, 2010. "Revisiting Linkages between Openness, Education and Economic Growth: System GMM Approach," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 193-222.
  • Handle: RePEc:ris:integr:0502
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    Cited by:

    1. Chee-Keong Choong, 2012. "Does domestic financial development enhance the linkages between foreign direct investment and economic growth?," Empirical Economics, Springer, vol. 42(3), pages 819-834, June.

    More about this item

    Keywords

    growth; system GMM; openness; trade; education; foreign direct investment;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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