Tertiary Education and Economic Growth: How Much Does Physical Capital Matter?

Abstract

: This paper addresses the impact of tertiary education on economic growth through physical capital accumulation. Results indicate the presence of a threshold of physical capital development, particularly in regions such as Northern Africa, Western Asia, and Latin America and the Caribbean, where tertiary education becomes in an important factor to the economic growth. This impact is not found in the absence of a physical capital analysis, which could suggest that the impact of tertiary education on economic growth could dilute when estimating the effect with traditional regressions.