Testing the higher education-led growth hypothesis in a small island: an empirical investigation from a new version of the Solow growth model
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
Volume (Year): 48 (2014)
Issue (Month): 2 (March)
|Contact details of provider:|| Web page: http://www.springer.com/economics/journal/11135|
|Order Information:||Web: http://link.springer.de/orders.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kamin, Steve B. & Rogers, John H., 2000.
"Output and the real exchange rate in developing countries: an application to Mexico,"
Journal of Development Economics,
Elsevier, vol. 61(1), pages 85-109, February.
- Steven B. Kamin & John H. Rogers, 1997. "Output and the real exchange rate in developing countries: an application to Mexico," International Finance Discussion Papers 580, Board of Governors of the Federal Reserve System (U.S.).
- Jordan Shan & Ken Wilson, 2001. "Causality between trade and tourism: empirical evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 279-283.
- Malcolm Knight & Norman Loayza & Delano Villanueva, 1993.
"Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach,"
IMF Staff Papers,
Palgrave Macmillan, vol. 40(3), pages 512-541, September.
- Malcolm D. Knight & Delano Villanueva & Norman Loayza, 1992. "Testing the Neoclassical Theory of Economic Growth; A Panel Data Approach," IMF Working Papers 92/106, International Monetary Fund.
- Al-Qudsi, Sulayman S., 1989. "Returns to education, sectoral pay differentials and determinants in Kuwait," Economics of Education Review, Elsevier, vol. 8(3), pages 263-276, June.
- Haiyan Song & Peter Romilly & Xiaming Liu, 2000. "An empirical study of outbound tourism demand in the UK," Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 611-624.
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
- Behrman, J.R. & Ross, D. & Sabot, R. & Alderman, H., 1995.
"The Returns to endogenous Human Capital in Pakistan's Rural Wage Labour Market,"
Center for Development Economics
141, Department of Economics, Williams College.
- Alderman, Harold, et al, 1996. "The Returns to Endogenous Human Capital in Pakistan's Rural Wage Labour Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 29-55, February.
- Naren Prasad, 2008. "Growth and social development in the Pacific Island countries," International Journal of Social Economics, Emerald Group Publishing, vol. 35(12), pages 930-950, October.
- M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
- Glewwe, Paul & Jacoby, Hanan G., 2004. "Economic growth and the demand for education: is there a wealth effect?," Journal of Development Economics, Elsevier, vol. 74(1), pages 33-51, June.
- Paresh Kumar Narayan & Russell Smyth, 2004. "The relationship between the real exchange rate and balance of payments: empirical evidence for China from cointegration and causality testing," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 287-291.
- Ram, Rati, 1989. "Can educational expansion reduce income inequality in less-developed countries?," Economics of Education Review, Elsevier, vol. 8(2), pages 185-195, April.
- Pilar Beneito & Javier Ferri & M. Luisa Molto & Ezequiel Uriel, 2001. "Determinants of the demand for education in Spain," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1541-1551.
- N. Gregory Mankiw, 1995.
"The Growth of Nations,"
Harvard Institute of Economic Research Working Papers
1732, Harvard - Institute of Economic Research.
- Pierre-Richard Agénor, 1991. "Output, devaluation and the real exchange rate in developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(1), pages 18-41, March.
- Salih Katircioglu, 2009. "Tourism, trade and growth: the case of Cyprus," Applied Economics, Taylor & Francis Journals, vol. 41(21), pages 2741-2750.
- Jacint Balaguer & Manuel Cantavella-Jorda, 2002.
"Tourism as a long-run economic growth factor: the Spanish case,"
Taylor & Francis Journals, vol. 34(7), pages 877-884.
- Jacint Balaguer & Manuel Cantavella-Jordá, 2000. "Tourism As A Long-Run Economic Growth Factor: The Spanish Case," Working Papers. Serie EC 2000-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Narayan, Paresh Kumar & Narayan, Seema, 2005. "Estimating income and price elasticities of imports for Fiji in a cointegration framework," Economic Modelling, Elsevier, vol. 22(3), pages 423-438, May.
- Cellini, Roberto, 1997. "Implications of Solow's Growth Model in the Presence of a Stochastic Steady State," Journal of Macroeconomics, Elsevier, vol. 19(1), pages 135-153, January.
- Psacharopoulos, George, 1989. "Time trends of the returns to education: Cross-national evidence," Economics of Education Review, Elsevier, vol. 8(3), pages 225-231, June.
- Salih Turan Katircioğlu, 2010. "International Tourism, Higher Education and Economic Growth: The Case of North Cyprus," The World Economy, Wiley Blackwell, vol. 33(12), pages 1955-1972, December.
- Giovanni Ferro Luzzi & Yves Fl¸ckiger, 2003. "An Econometric Estimation Of The Demand For Tourism: The Case Of Switzerland," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 289-303, October.
When requesting a correction, please mention this item's handle: RePEc:spr:qualqt:v:48:y:2014:i:2:p:729-744. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.