The Growth Effects of Education in CEE and Balkan Countries
| Thesis title in Czech: | |
|---|---|
| Thesis title in English: | The Growth Effects of Education in CEE and Balkan Countries |
| English key words: | Education, Economic Growth, CEE countries, Balkan countries, Cross-Country Growth Accounting, Endogeneity |
| Academic year of topic announcement: | 2011/2012 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 22.06.2012 |
| Date of assignment: | 22.06.2012 |
| Date and time of defence: | 28.01.2014 00:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 03.01.2014 |
| Date of proceeded defence: | 28.01.2014 |
| Opponents: | doc. PhDr. Lubomír Cingl, Ph.D. |
| URKUND check: | |
| Guidelines |
| This study applies the cross-country growth accounting regressions derived from the augmented Solow-Swan model to ascertain the growth effects of education in CEE and Balkan countries. We firstly test whether the total stock or accumulation of education matters more for corresponding countries’ growth and afterwards we decompose the total stock into educational stocks at primary, secondary and tertiary levels to test whether the disaggregated educational levels have different growth effects. We do so by applying the panel fixed effects technique on 17 CEE countries during the 1990-2010 period. In addition, we address the endogeneity of education by using the lags of different educational proxies as instruments. The general results suggest the total stock of education is significantly contributing to economic growth of CEE countries with the biggest growth effect of tertiary education. Regarding the Balkan countries only, the growth effect of education is almost a null. We conclude that one cannot have economic growth without a good educational system and efficient usage of human capital. Thus, the policy implications should be related to the proper identification of the quality of educational governance, problem of mismatch on labor market and better utilization of human capital. |
| References |
| Barro R.J. (1991): “Economic Growth in a Cross-Section of Countries”, Quarterly Journal of Economics, MIT Press, vol. 106 (2), pp. 407-443, May
Barro R.J., LEE J.W. (2001): “International Data on Educational Attainment: Updates and Implications”, Oxford Economic Papers, Oxford University Press, vol. 53 (3), pp. 541-563, July Benhabib S., Spiegel M.M. (1994): “The Role of Human Capital in Economic Development: Evidence from Aggregate Cross-Country Data”, Journal of Monetary Economics, Elsevier, vol. 34(2), pp. 143-173, October Bils M., Klenow P.J. (2000): “Does Schooling Cause Growth”, American Economic Review, vol. 90(5), pp. 1160-1183, December Cohen D., Soto M. (2007): “Growth and Human Capital: Good Data, Good Results”, Journal of Economic Growth, Springer, vol. 12(1), pp.51-76, March Gemmell N. (1996): “Evaluation the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence”, Oxford Bulleting of Economics and Statistics, vol. 58(1), pp. 9-28 Islam N. (1995): “Growth Empirics: A Panel Data Approach”. The Quarterly Journal of Economics, vol. 110(4), pp. 1127-1170, November Mankiw G., Romer D., Weil D. (1992): “A Contribution to the Empirics of Economic Growth”, Quarterly Journal of Economics, pp. 407-437 Papageorgiou C. (2003): “Distinguishing Between the Effects of Primary and Post-Primary Education on Economic Growth”, Review of Development Economics, vol. 7(4), pp. 622-635 Sianesi B., Van Reenen J. (2003): “The Returns to Education: Macroeconomics”, Journal of Economic Surveys, vol. 17(2), pp. 157-200 Solow R.M. (1956): “A Contribution to the Theory of Economic Growth”, Quarterly Journal of Economics, vol. 70, pp. 65-94 Temple J. (1999): “A Positive Effect of Human Capital on Growth”, Economic Letters, vol. 65(1), pp.131-134 |
| Preliminary scope of work |
| This study applies the cross-country growth accounting regressions derived from the augmented Solow-Swan model to ascertain the growth effects of education in CEE and Balkan countries. We firstly test whether the total stock or accumulation of education matters more for corresponding countries’ growth and afterwards we decompose the total stock into educational stocks at primary, secondary and tertiary levels to test whether the disaggregated educational levels have different growth effects. We do so by applying the panel fixed effects technique on 17 CEE countries during the 1990-2010 period. In addition, we address the endogeneity of education by using the lags of different educational proxies as instruments. The general results suggest the total stock of education is significantly contributing to economic growth of CEE countries with the biggest growth effect of tertiary education. Regarding the Balkan countries only, the growth effect of education is almost a null. We conclude that one cannot have economic growth without a good educational system and efficient usage of human capital. Thus, the policy implications should be related to the proper identification of the quality of educational governance, problem of mismatch on labor market and better utilization of human capital.
1. Introduction 2. Theoretical Background 3. Literature Review 4. Methodology and Data 5. Empirical Results: Disucssion and Policy Implications 6. Conclusions |
| Preliminary scope of work in English |
| Hypotheses:
1. There is positive and statistically significant relationship between overall education and economic growth in CEE and Balkan countries 2. Educational stock matters more for economic growth than the accumulation of education in CEE and Balkan countries 3. Tertiary education has the biggest growth effects among all disaggregated educational levels in CEE and Balkan countries Methodology: In order to test our hypotheses, we apply a panel data model with fixed effects. Since we are interested in the differences between CEE countries as a whole and a subgroup of Balkan countries, we include the cross-product dummy for education in Balkan countries in our regressions. In addition, we incorporate the Instrumental Variable into our fixed effects model to address the potential endogeneity of education. Finally, we use different proxies for education to test if our results are robust |