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Higher Test Scores or More Schooling? Another Look at the Causes of Economic Growth

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  • Theodore R. Breton

Abstract

I use a dynamic augmented Solow model to estimate the effects of students’ test scores and investment in schooling on economic growth rates in 49 countries during 1985-2005. In the complete data set, either average test scores or investment in schooling explain economic growth rates, and more of either causes growth. Further analysis reveals that higher test scores only raised growth rates in countries with low average levels of schooling. In countries with more than 7.5 years of schooling attainment in 1985, more investment in schooling raised growth rates, but higher average test scores did not.

Suggested Citation

  • Theodore R. Breton, 2013. "Higher Test Scores or More Schooling? Another Look at the Causes of Economic Growth," Documentos de Trabajo de Valor Público 11832, Universidad EAFIT.
    • Handle: RePEc:col:000122:011832
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    References listed on IDEAS

    as
    1. Theodore Breton, 2010. "Schooling and national income: how large are the externalities?," Education Economics, Taylor & Francis Journals, vol. 18(1), pages 67-92.
    2. Thomas Fuchs & Ludger Wößmann, 2008. "What accounts for international differences in student prformance? A re-examination using PISA data," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 209-240, Springer.
    3. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    4. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
    5. Isaac Ehrlich & Jinyoung Kim, 2007. "The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 137-174.
    6. Hai-Anh Dang & F. Halsey Rogers, 2008. "The Growing Phenomenon of Private Tutoring: Does It Deepen Human Capital, Widen Inequalities, or Waste Resources?," The World Bank Research Observer, World Bank, vol. 23(2), pages 161-200, April.
    7. Ludger Wößmann, 2003. "Schooling Resources, Educational Institutions and Student Performance: the International Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(2), pages 117-170, May.
    8. Peter J. Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114, National Bureau of Economic Research, Inc.
    9. Theodore Breton, 2010. "Schooling and National Income: How Large Are the Externalities? Revised Estimates," Documentos de Trabajo de Valor Público 10613, Universidad EAFIT.
    10. Theodore Breton, 2010. "Schooling and national income: how large are the externalities? Corrected estimates," Education Economics, Taylor & Francis Journals, vol. 18(4), pages 455-456.
    11. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    12. Ding, Sai & Knight, John, 2009. "Can the augmented Solow model explain China's remarkable economic growth? A cross-country panel data analysis," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 432-452, September.
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    Cited by:

    1. Oniovosa Stanley Oghenenyerhovwo, 2018. "The Role of Arts and Social Science Education on the Growth and Development of the Nigerian Economy," Sumerianz Journal of Economics and Finance, Sumerianz Publication, vol. 1(1), pages 1-8, 06-2018.
    2. Altinok, Nadir & Aydemir, Abdurrahman, 2017. "Does one size fit all? The impact of cognitive skills on economic growth," Journal of Macroeconomics, Elsevier, vol. 53(C), pages 176-190.
    3. Campbell, Susanna G. & Üngör, Murat, 2020. "Revisiting human capital and aggregate income differences," Economic Modelling, Elsevier, vol. 91(C), pages 43-64.
    4. Sami Chaabouni & Mounir Ben Mbarek, 2024. "What Will Be the Impact of the COVID-19 Pandemic on the Human Capital and Economic Growth? Evidence from Eurozone," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2482-2498, March.
    5. Anna Valero, 2021. "Education and economic growth," CEP Discussion Papers dp1764, Centre for Economic Performance, LSE.
    6. Breton, Theodore R., 2015. "Human capital and growth in Japan: Converging to the steady state in a 1% world," Journal of the Japanese and International Economies, Elsevier, vol. 36(C), pages 73-89.
    7. Sivropoulos-Valero, Anna Alexandra, 2021. "Education and economic growth," LSE Research Online Documents on Economics 114434, London School of Economics and Political Science, LSE Library.
    8. Anna Valero, 2021. "Education and economic growth," POID Working Papers 006, Centre for Economic Performance, LSE.
    9. Theodore R. Breton & Andrew S. Breton, 2021. "Growth in a macro‐Mincer model: Good results with schooling and experience interactions," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 563-581, May.

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    More about this item

    Keywords

    Education Expenditures; Human Capital; Test Scores; Economic Growth;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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