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Education and Economic Growth: A Case Study of Australia

Author

Listed:
  • Sawami Matsushita

    (Centre for Labour Market Research, The University of Western Australia)

  • Abu Siddique

    (Business School, The University of Western Australia)

  • Margaret Giles

    (Business School, The University of Western Australia)

Abstract

The purpose of this paper is to measure the contribution of education to growth in per capita real GDP in Australia over the period 1969-2003 using the growth accounting method. Also estimated is the contribution of total factor productivity to growth. Over the period, per capita real GDP in Australia increased by 1.9 percent per annum. Of this, about 31 percent was contributed by education. This finding has important implications for policy makers in Australia. For example, in order to promote economic growth in coming years, access to post compulsory education, particularly vocational education and training and higher education, for all Australians should be made easier and cheaper. This contradicts recent trends at the federal level towards increasing the student share of education costs.

Suggested Citation

  • Sawami Matsushita & Abu Siddique & Margaret Giles, 2006. "Education and Economic Growth: A Case Study of Australia," Economics Discussion / Working Papers 06-15, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:06-15
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    References listed on IDEAS

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    Cited by:

    1. Bashir, Saima & Herath, Janaranjana & Gebremedhin, Tesfa G., 2012. "An Empirical Analysis of Higher Education and Economic Growth in West Virginia," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124829, Agricultural and Applied Economics Association.
    2. Seuk Yen Phoong* & Seuk Wai Phoong & Xiao Jun Tan, 2018. "A Mediation Analysis on Level of Education and Economic Growth," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 417-422:6.
    3. Akinola G W & Bokana K G, 2018. "Human Capital, Higher Education Enrolment and Economic Growth in the SSA Countries (Panel Model Approach)," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 215-226.
    4. Adeshina, Kelani Fatai & Tomiwa, Olunlade Yetunde & Eniola, Olubanwo Mosunmola, 2020. "Agricultural Financing and Economic Performance in Nigeria," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 38(7).

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    More about this item

    Keywords

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    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania
    • I29 - Health, Education, and Welfare - - Education - - - Other

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