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The contribution of education to economic growth: Evidence from Nepal

Author

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  • A. Z. Nowak

    (University of Warsaw)

  • Gangadhar Dahal

    (Faculty of management, University of Warsaw)

Abstract

This paper investigates the long run relationship between education and economic growth in Nepal between 1995 and 2013 through application of Johansen Cointegration technique and OLS. The results from OLS show that secondary and higher education contributes significantly to the Real GDP Per Capita in Nepal. The elementary education also positively influences economic growth but the results are statistically less significant. The cointegration test results confirmed the existence of long run relationship in education (a well-educated human capital) and Real GDP Per Capita. It is therefore, suggested to keep education on top priority in public policies, make serious efforts for Universalization of Primary Education and discourage the drop-out rate at all levels of education to achieve sustained economic growth.

Suggested Citation

  • A. Z. Nowak & Gangadhar Dahal, 2016. "The contribution of education to economic growth: Evidence from Nepal," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(2), pages 22-41, June.
    • Handle: RePEc:sek:jijoes:v:5:y:2016:i:2:p:22-41
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    Cited by:

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    5. Simplice A. Asongu & Jean R. F. K. Bouanza & Armand F. Akpa, 2024. "Governance and Structural Transformation in Africa: Thresholds of Lifelong Gender Inclusive Education," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 24/010, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
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    9. Simona Andreea Apostu & Lindita Mukli & Mirela Panait & Iza Gigauri & Eglantina Hysa, 2022. "Economic Growth through the Lenses of Education, Entrepreneurship, and Innovation," Administrative Sciences, MDPI, vol. 12(3), pages 1-14, June.
    10. Luxolo Malangeni & Andrew Phiri, 2017. "Education and economic growth in post-Apartheid South Africa," Working Papers 1716, Department of Economics, Nelson Mandela University, revised Dec 2017.
    11. Marco Marto & João Lourenço Marques & Mara Madaleno, 2022. "An Evaluation of the Efficiency of Tertiary Education in the Explanation of the Performance of GDP per Capita Applying Data Envelopment Analysis (DEA)," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    12. Sieng, Lai Wei & Yussof, Ishak, 2018. "Impact of Higher Education on Income and Economic Growth: A Cross Country Evidence," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 189-198.
    13. Chaohai Shen & Tong Sheng & Xingheng Shi & Bingquan Fang & Xiaoqian Lu & Xiaolan Zhou, 2022. "The Relationship between Housing Price, Teacher Salary Improvement, and Sustainable Regional Economic Development," Land, MDPI, vol. 11(12), pages 1-21, December.
    14. Kauano, Érico Emed & Silva, José Maria Cardoso & Diniz Filho, José Alexandre Felizola & Michalski, Fernanda, 2020. "Do protected areas hamper economic development of the Amazon region? An analysis of the relationship between protected areas and the economic growth of Brazilian Amazon municipalities," Land Use Policy, Elsevier, vol. 92(C).
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    More about this item

    Keywords

    Education; Economic growth; Ordinary Least Squares (OLS);
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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