Education-Economic Growth Nexus: A Review

Jangraiz KHAN, Zilakat Khan MALIK

Abstract


This paper is focused on a review of education and economic growth relationship. It reviews both the theoretical as well as empirical literature relevant to education-economic growth nexus. The study of economic growth is an old area but addition to the determinants remained a unceasing during the history. The human capital-economic growth relationship is evident even from Adam smith theories. However, it got formal recognition in New Growth theories. The literature shows that human capital is not measurable directly; instead, some proxies are used for it. Education, health, research and development, experience and skills are some of the most commonly measures for human capital. Education as a determinant has been used extensively. Some of the studies recognize its positive role while others negative. Different levels of education showed different type of effects. It is concluded on the basis of reviewed literature that human capital in form of education affects economic growth through different channels.

Keywords. Education, Economics Education.

JEL. O10,O15, O40.


Full Text:


References


Abbas, Q. (2001). Endogenous Growth and Human Capital: A Comparative Study of Pakistan and Sri Lanka. The Pakistan Development Review, 40(4), 987–1007.

Akintoye, I. R., & Adidu. F. A. (2008). Optimizing National Growth through Human Resource Investment. European Journal of Scientific Research, 22(3),433 443.

Albatel, A. H. (2004). Human Resource Development and Economic Growth in Saudi Arabia. Journal of King Saud University, 16, 35-59.

Asteriou, D., & Agiomirgianakis, G. M. (2001). Human Capital and Economic Growth Time series Evidence from Greece. Journal of Policy Modeling, 23, 481-489. doi: 10.1016/S0161-8938(01)00054-0

Arrow, K. J. (1962). The Economic Implications of Learning by Doing. The Review of Economic Studies. 29(3), 155-173. doi: 10.2307/2295952

Barro, R, J. (1991). Economic Growth in Cross-Section of Countries. The Quarterly Journal of Economics. 106(2), 407-443. doi: 10.2307/2937943

Barro, R, J., & Lee, J.W. (2000). International Data on Educational Attainment, Updates andImplications. NBER Working Paper No.7911. doi: 10.3386/w7911

Brempong, K.G. (2004). Health human capital and economic growth in Sub-Saharan African and OECD countries. The Quarterly Review of Economics and Finance, 44(2), 296-320. doi: 10.1016/j.qref.2003.07.002

Deaton, A., (2001). Health, inequality, and economic development. Document n° WG1:3 préparé pour le Groupe de travail 1 de la Commission Macroéconomie et Santé.

Echevaria, C.A., & Iza, A. (2006). Life expectancy, human capital, social security and Growth. Journal of Public Economics, 90(12), 2323-2349. doi: 10.1016/j.jpubeco.2006.07.001

Evans, P. (1998). Using Panel Data to Evaluate Growth Theories. International Economic Review, 39(2) , 295-306. doi: 10.2307/2527294

Fogel, R.W. (1994). Economic growth, population theory and physiology: The bearing of long-term processes on the making of economic policy. American Economic Review, 84(3), 369-395.

Glewwe, P., & Jacoby, H.G. (2004). Economic growth and the demand for education: is there a wealth effect? Journal of Development Economics, 74(1), 33-51. doi: 10.1016/j.jdeveco.2003.12.003

Harmon, C., Oosterbeek, H., & Walker, I. (2003). The Returns to Education: Microeconomics. Journal of Economic Surveys, 17(2), 115-155. doi: 10.1111/1467-6419.00191

Khan, M. S. (2005). Human Capital and Economic Growth in Pakistan. Pakistan Development Review, 44(4), 455-478.

Khan, J. (2012). The Role of Human Capital in Economic growth of Pakistan (1971-2008), Ph. D in Economics Thesis Submitted to Department of Economics, University of Peshawar, Pakistan.

Khattak, N. R., & Khan, J. (2012). The Contribution of Education To Economic Growth: Evidence From Pakistan. International Journal of Business and Social Science, 3(4), 145-151.

Khan, J., & Khattak, N. R. (2013). The significance of Research and Development for Economic growth: The case of Pakistan. City University Research Journal, 3(2), 175-186.

Limam, Y.R, & Miller, S. M. (2004). Explaining Economic Growth: Factor Accumulation, Total Factor Productivity Growth, and Production Efficiency Improvement. Department of Economics Working Paper Series, Working Paper No. 20, University of Connecticut.

Lin. T. C. (2006). Alternative Measure for Education Variable in an Empirical Growth Model. Is Primary education less important? Economics Bulletin, 15(15) 1-6.

Lucas, R., (1988). On the Mechanics of Economic Erowth, Journal of Monetary Economics, 22(1), 3-22. doi: 10.1016/0304-3932(88)90168-7

Madsen, J. (2012). Health, Human capital formation and knowledge production: Two Centuriesof international evidence. NBER Working Paper, No.18461. doi: 10.3386/w18461

Mankiw, N. G., Romer, P., & Weil, D. N. (1992). A Contribution to the Empirics of

Economic Growth. Quarterly Journal of Economics, 107(2), 407-37. Doi: 10.3386/w3541

Ngangue, N., & Manfred, K. (2015), The Impact of life Expectancy on Economic Growth in Developing Countries. Asian Economic and Financial Review, 5(4): 653-660.

Pejovich, S. (1966). Reviewed Work: Human Capital: A Theoretical and Empirical Analysis with Special References to Education by Gary Becker, Review of Social Economy, 24(2), 167-175.

Petrakis, P. E., & Stamatakis, D. (2002). Growth and Educational Levels: A Comparative Analysis, Economics of Education Review, 21(5), 513–521. doi: 10.1016/S0272-7757(01)00050-4

Pritchett, L. (1996). W here has All the Education Gone? Policy Research. Working Paper No.1581 The World Bank, Policy Research Department, Poverty and Human Resources Division.

Romer, P. M. (1994). Economic Growth and Investment in Children. Health and Wealth, 123(4), 141-154.

Schultz, T. W. (1961a). Investment in Human Capital. American Economic Review, 51(1), 1-17.

Seren, M. J. F. (2001). Human Capital Accumulation and Economic Growth. Investigations Economics, 25(3), 285-602.

Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations, Book 2. W.Strahan & T. Cadell, London. doi: 10.7208/chicago/9780226763750.001.0001

Uzawa, H. (1965). Technical Change in Aggregative Model of Economic Growth. International Economic Review, 6(1), 18-31.

Weil, D.N. 2005.Accounting for the effect of health on economic growth. NBER Working Paper No. 11455. doi:10.2139/ssrn.764484




DOI: http://dx.doi.org/10.1453/jest.v2i2.312

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Journal of Economic and Social Thought - J. Econ. Soc. Thoug. - JEST - www.kspjournals.org

ISSN: 2149-0422

Editor: jest@ksplibrary.org   Secretarial: secretarial@ksplibrary.org   Istanbul - Turkey.

Copyright © KSP Library