{"title":"Quality of Education and Economic Growth","authors":"Kalyan Chakraborty","doi":"10.1007/s11293-025-09826-2","DOIUrl":null,"url":null,"abstract":"<div><p>The conventional method of estimating the effect of education on economic growth is to estimate cross-country growth regressions using the annual growth of gross domestic product as a dependent variable and average number of years of schooling in a population and other macroeconomic factors as explanatory variables. Since students in different countries with the same number of years in school have different learning outcomes, cross-country studies that use quantity of schooling instead of quality of educational attainment and/or individual skills fail to capture the impact of human capital on economic growth. This study attempts to fill this gap using recently developed quality-adjusted educational attainment data from 53 countries over a 40-year period (1970–2010) and examines the significance of educational skills on economic growth. Several macroeconomic factors (e.g., government expenditure, growth of fixed capital, average longevity of the population, and trade as a percentage of gross domestic product) were used as control variables. The primary data source for the macroeconomic variables was the World Bank World Development Indicators. Cross country data on quality-adjusted educational attainment data came from three diverse sources: Lee and Lee, Barro and Lee, and Altinok and Diebolt. The empirical study used the dynamic generalized method of moments model that addresses the potential problem of endogeneity and causality, common issues in growth regressions. The study found that when human capital is measured by skill and learning, it is strongly associated with economic growth. Since educational institutions are the major source for developing cognitive skills, policies to improve educational attainment through investment in education would promote economic growth.</p></div>","PeriodicalId":46061,"journal":{"name":"ATLANTIC ECONOMIC JOURNAL","volume":"53 3","pages":"125 - 141"},"PeriodicalIF":0.8000,"publicationDate":"2025-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ATLANTIC ECONOMIC JOURNAL","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s11293-025-09826-2","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
The conventional method of estimating the effect of education on economic growth is to estimate cross-country growth regressions using the annual growth of gross domestic product as a dependent variable and average number of years of schooling in a population and other macroeconomic factors as explanatory variables. Since students in different countries with the same number of years in school have different learning outcomes, cross-country studies that use quantity of schooling instead of quality of educational attainment and/or individual skills fail to capture the impact of human capital on economic growth. This study attempts to fill this gap using recently developed quality-adjusted educational attainment data from 53 countries over a 40-year period (1970–2010) and examines the significance of educational skills on economic growth. Several macroeconomic factors (e.g., government expenditure, growth of fixed capital, average longevity of the population, and trade as a percentage of gross domestic product) were used as control variables. The primary data source for the macroeconomic variables was the World Bank World Development Indicators. Cross country data on quality-adjusted educational attainment data came from three diverse sources: Lee and Lee, Barro and Lee, and Altinok and Diebolt. The empirical study used the dynamic generalized method of moments model that addresses the potential problem of endogeneity and causality, common issues in growth regressions. The study found that when human capital is measured by skill and learning, it is strongly associated with economic growth. Since educational institutions are the major source for developing cognitive skills, policies to improve educational attainment through investment in education would promote economic growth.
期刊介绍：
The Atlantic Economic Journal (AEJ) has an international reputation for excellent articles in all interest areas, without regard to fields or methodological preferences. Founded in 1973 by the International Atlantic Economic Society, a need was identified for increased communication among scholars from different countries. For over 30 years, the AEJ has continuously sought articles that traced some of the most critical economic changes and developments to occur on the global level. The journal''s goal is to facilitate and synthesize economic research across nations to encourage cross-fertilization of ideas and scholarly research. Contributors include some of the world''s most respected economists and financial specialists, including Nobel laureates and leading government officials. AEJ welcomes both theoretical and empirical articles, as well as public policy papers. All manuscripts are submitted to a double-blind peer review process. In addition to formal publication of full-length articles, the AEJ provides an opportunity for less formal communication through its Anthology section. A small point may not be worthy of a full-length, formal paper but is important enough to warrant dissemination to other researchers. Research in progress may be of interest to other scholars in the field. A research approach ending in negative results needs to be shared to save others similar pitfalls. The Anthology section has been established to facilitate these forms of communication. Anthologies provide a means by which short manuscripts of less than 500 words can quickly appear in the AEJ. All submissions are formally reviewed by the Board of Editors. Officially cited as: Atl Econ J
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