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Relationship Between Growth and Education in the Context of Middle-Income Trap: Cases of Turkey, Brazil, and Mexico

Author

Listed:
  • Harun Kalmaç

    (İstanbul Üniversitesi, İktisat Bölümü Doktora Öğrencisi)

  • Emine Tahsin

    (İstanbul Üniversitesi İktisat Fakültesi, Doç. Dr.)

Abstract

Turkey, Brazil and Mexico are classified among the major countries that caught in the middle-income trap. Given that, the relationship between economic growth and education for Turkey, Brazil and Mexico is analyzed on the basis of the middle-income trap concept. The countries that get escaped from the middle-income trap have common characteristics; a growth model based on R&D and innovation. In this context, the paper aims to set up the relationship between GDP per capita income, education, manufacturing and savings data for Turkey, Brazil and Mexico. For this purpose, relevant data from 1990 to 2015 is estimated by using VAR model. As a part of the VAR model, impulse response relation is evaluated, and it is concluded that education led to increase the level of savings and savings led to increase GDP per capita.

Suggested Citation

  • Harun Kalmaç & Emine Tahsin, 2020. "Relationship Between Growth and Education in the Context of Middle-Income Trap: Cases of Turkey, Brazil, and Mexico," Yildiz Social Science Review, Yildiz Technical University, vol. 6(1), pages 33-60.
    • Handle: RePEc:aye:journl:v:6:y:2020:i:1:p:33-60
    DOI: 10.51803/yssr.680273
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    Keywords

    Middle Income Trap; Economic Growth and Education; Middle Income Trap in Turkey; Middle Income Trap in Brazil; Middle Income Trap in Mexico; VAR ModelsJournal: Yildiz Social Science Review;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F30 - International Economics - - International Finance - - - General
    • G00 - Financial Economics - - General - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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