HIGHER EDUCATION AND ECONOMIC GROWTH: SWEDISH EVIDENCE FROM MULTIVARIATE FRAMEWORK

Saša Obradović, Nemanja Lojanica

DOI Number
-
First page
177
Last page
185

Abstract


In this article, we investigate the long and short run relationship between higher education and economic growth in multivariate framework for Sweden, for the period from 1971 to 2013, by using ARDL approach. Toda-Yamamoto procedures of Granger non-causality test were applied to detect the direction of causality in the relationship between economic growth and higher education. We found that unidirectional causality between higher education and real GDP per capita, exists. This relationship is positive, but not mutually reinforcing.


Keywords

education, economic growth, ARDL, Toda-Yamamoto, Sweden

Full Text:

PDF

References


Asteriou, D., Agiomirgianakis, G., M. (2001) Human Capital and Economic Growth: Time Series Evidence from Greece, Journal of Policy Modeling, Volume 23: 481-89.

Bannerjee, A., Dolado, J., Mestre, R. (1998) Error-correction mechanism tests for cointegration in single equation framework, Journal of Time Series Analysis, Volume 19: 267-283.

Barro, R. (1991), Economic growth in a cross section countries, Quarterly Journal of Economics, Volume 106 : 407-443.

Barro, R., Martin-Sala, X. (1995), Economic Growth- Second Edition, McGraw-Hill.

Danacica, D., Belascu, L., Llie, L. (2010) The interactive causality between higher education and economic growth in Romania, International Review of Business Research Paper, Volume 4(6): 491 – 500.

De Meulemeester, J. and Rochat, D. (1995) A causality analysis of the link between higher education and economic development, Economics of Education Review, Volume 14(4): 351-361.

Hanushek, E., Kimko, D. (2000) Schooling, Labor-Force Quality, and the Growth of Nations, The American Economic Review, Volume 90(5): 1184-1208.

Hsiao, C. (1997) Cointegration and dynamic simultaneous equation model, Econometrica, Volume 65: 647–670.

Huang, F., Jin, L., Sun, X. (2009) Relationship Between Scale of Higher Education and Economic Growth in China, Asian Social Sciences, Volume 5: 55-60.

Hussin, M., Muhammad, F., Hussin, M., Razak, A. (2012) Education Expenditure and Economic Growth: A Causal Analysis for Malaysia, Journal of Economics and Sustainable Development, Volume 3(7): 71-81.

Katircioğlu, S., Fethi, S., Caner, H.(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 and Quantity, Volume 48(2): 729-744.

Khorasgani, M. (2008) Higher education development and economic growth in Iran, Education, Business and Society: Contemporary Middle Eastern Issues, Volume 1(3): 162 – 174.

Leow, Y. G. (2004) A reexamination of the role of exports in Malaysia’s economic growth: after Asian financial crisis, 1970-2000, International Journal of Management Sciences, Volume 11: 79-104.

Lin, T. C. (2004) The Role of Higher Education in Economic Development: Αn Empirical Study of Taiwan, Journal of Asian Economics, Volume 15: 355-371.

Mankiw, G., Romer, D., Weil, D. (1992) A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, Volume 107(2): 407-437.

Narayan, P. K. (2005) The saving and investment nexus for China: evidence from cointegration tests, Applied Economics, Volume 37: 1979 — 1990.

Narayan, P. K., Smyth, R. (2006) Higher education, real income and real investments in China: evidence from Granger causality tests, Education Economics, Volume 14: 107-125.

Omojimite, B. (2010), Education and Economic Growth in Nigeria: A Granger Causality Analysis, African Research Review, Volume 4: 90-108.

Organization for Economic Co-operation and Development, www.oecd.org/els/health-systems/health-data (20.12.2015)

Pegkas, P. (2014) The Link between Education Levels and Economic Growth: A Neoclassical Approach for the Case of Greece, International Journal of Applied Economics, Volume 11(2): 38-54.

Pereira, J., Aubyn, M., St. (2009) What Level of Education Matters Most For Growth? Evidence From Portugal, Economics of Education Review, Volume 28: 67-73.

Pesaran, M. H., Shin, Y., Smith, R., J. (2001) Bounds testing approaches to the analysis of level relationships, Journal of Applied Econometrics, Volume 16: 289-326.

Rambaldi, A. N., Doran, H. E. (1996) Testing for Granger non-causality in cointegrated system made easy, Working Papers in Econometrics and Applied Statistics, Volume 88: 1-23.

Toda, H., Yamamoto, T. (1995) Statistical inference in vector autoregressions with possibly integrated processes, Journal of Econometrics, Volume 66: 225-250.

Wasim, Q., Raza, A. S., Jawaid, T. (2014) Higher education and growth performance of Pakistan: Evidence from multivariate framework, Quality and Quantity, Volume 48: 1651-1665.

World Bank, World Development Indicators, data.worldbank.org (28.11.2015).

Yakubu, M., Akanegbu, B. (2015) Education expenditure and economic growth in Nigeria: Granger Causality test, Journal of business management and economics, Volume 3: 1-6.

Zivengwa. T. (2012), Investigating the Causal Relationship between Education and Economic growth in Zimbabwe, Global Journal of Management and Business Research, Volume 12(8): 107-117.


Refbacks

  • There are currently no refbacks.


© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)