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Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece

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  • Panagiotis PEGKAS

    (Department of Home Economics and Ecology, School of Environment, Geography and Applied Economics, Harokopio University, Athens, Greece)

  • Constantinos TSAMADIAS

    (Department of Home Economics and Ecology, School of Environment, Geography and Applied Economics, Harokopio University, Athens, Greece)

Abstract

This study empirically investigates the link between the levels of formal education and economic growth in Greece during the period 1960-2009. The paper applies the Lucas approach (1988) and employs cointegration, error-correction models and estimates the effect of each educational level on economic growth. The empirical analysis reveals that there is a long-run relation between educational levels and gross domestic product. The overall results show that secondary and higher education has had a statistically significant positive impact on growth, while primary has not contributed to economic growth. The findings also suggest that there is evidence of unidirectional long-run causality running from primary education to growth, bidirectional long-run causality between secondary and growth, long-run and short-run causality running from higher education to economic growth.

Suggested Citation

  • Panagiotis PEGKAS & Constantinos TSAMADIAS, 2015. "Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 9-32, June.
    • Handle: RePEc:aic:revebs:y:2015:j:15:pegkasp
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    More about this item

    Keywords

    formal education levels; human capital; enrolment rates; economic growth; VAR; Greece;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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