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Effects of primary, secondary, and tertiary education on economic growth : evidence from Guatemala

Author

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  • Loening, Josef L.

Abstract

Loening investigates the impact of human capital on economic growth in Guatemala during 1951-2002 using an error-correction methodology. The results show a better-educated labor force having a positive and significant impact on economic growth. Consistent with microeconomic studies for Guatemala, primary and secondary education are most important for productivity growth. These findings are robust while changing the conditioning set of the variables, controlling for data issues and endogeneity. Due to an environment of social and political conflict, however, total factor productivity has been slightly negative for the past decades, and there is evidence of a missing complementarily between the country's skills and its technology base. The author presents a growth-accounting framework which takes into account quality changes of physical capital, and differentiates by level of education. It shows that the human capital variables explain more than 50 percent of output growth. Of these, secondaryschooling is the predominant determinant of growth.

Suggested Citation

  • Loening, Josef L., 2005. "Effects of primary, secondary, and tertiary education on economic growth : evidence from Guatemala," Policy Research Working Paper Series 3610, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3610
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    Citations

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    Cited by:

    1. Dalibor Eterovic & Cassandra Sweet, 2011. "How Women and Illiterates Shaped Education Outcomes in 20th Century Latin America," Working Papers wp_007, Adolfo Ibáñez University, School of Government.
    2. Alejos, Luis Alejandro, 2006. "La elección del sector laboral y los retornos a la educación en Guatemala
      [Labour Sector Choice and the Returns to Education in Guatemala]
      ," MPRA Paper 42756, University Library of Munich, Germany.
    3. Loening, J.L., 2005. "Estimating Human and Physical Capital Stocks in Data-Scarce Environments: A Methodological Note and Application to Guatemala," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 84-114.
    4. Yasemin OZERKEK, 2014. "The Effect of Labor Composition Index on Economic Development: Analysis of 18 countries for the period 1990-2010," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(2).
    5. Gazi Mainul Hassan & Arusha Cooray, 2013. "Effects of Male and Female Education on Economic Growth: Some Evidence from Asia Using the Extreme Bounds Analysis," Working Papers in Economics 13/10, University of Waikato.
    6. Lee, Keun & Kim, Byung-Yeon, 2009. "Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited," World Development, Elsevier, vol. 37(3), pages 533-549, March.
    7. Tudose Mihaela Brindusa & Cadiş Mihaela Narciza, 2013. "The Role Of Education In The Economic Development," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 85-92, August.
    8. Chun-Li Tsai & Ming-Cheng Hung & Kevin Harriott, 2010. "Human Capital Composition and Economic Growth," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(1), pages 41-59, October.
    9. Bahar Bayraktar-Sağlam, 2016. "The Stages of Human Capital and Economic Growth: Does the Direction of Causality Matter for the Rich and the Poor?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 243-302, May.
    10. Daren, Conrad, 2007. "Education and Economic Growth: Is There a Link?," MPRA Paper 18176, University Library of Munich, Germany, revised 2009.

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