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Testing the higher education-led growth hypothesis in a small island: an empirical investigation from a new version of the Solow growth model

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  • Salih Katircioğlu

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  • Sami Fethi

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  • Hamit Caner

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Abstract

This study employs a new version of the Solow Growth Model in order to investigate the higher education-led growth (HELG) hypothesis in the case of North Cyprus. Results reveal that a long-run equilibrium relationship exists between real income growth of North Cyprus and its determinants, namely capital, labor, and the higher education sector. Results show that real income growth converges to its long-term equilibrium level by 10.9 %. Granger causality tests suggest undirectional causality from higher education growth to real income growth in North Cyprus. Therefore, the HELG hypothesis can be inferred for the Turkish Cypriot economy. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Salih Katircioğlu & Sami Fethi & Hamit Caner, 2014. "Testing the higher education-led growth hypothesis in a small island: an empirical investigation from a new version of the Solow growth model," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(2), pages 729-744, March.
  • Handle: RePEc:spr:qualqt:v:48:y:2014:i:2:p:729-744 DOI: 10.1007/s11135-012-9798-9
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    References listed on IDEAS

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    Cited by:

    1. 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, pages 2367-2393.

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