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The effects of formal educations’ levels on regional economic growth in Greece over the period 1995–2012

Author

Listed:
  • Karatheodoros Anastasios

    (Harokopio University)

  • Tsamadias Constantinos

    (Harokopio University)

  • Pegkas Panagiotis

    (University of Thessaly)

Abstract

This study empirically investigates the relationship among the levels of formal education and regional economic growth in Greece, over the period 1995–2012. It uses a panel data set, which includes 13 regions. The proxy of human capital is the proportion of the employees that has received primary, secondary and higher education. Also, the study estimates the effect of the level of education on economic growth in low and high-income Greek regions, separately. The empirical analysis reveals that in the long-run considering all regions, secondary and higher education have had a positive effect on regional GDP, while primary education has had a negative effect. Regarding the two subgroups of regions, the results show that in low-income regions, secondary education has more significant effect than higher education, while in high-income regions higher education contributes more to GDP, than secondary education. The results also suggest that there is evidence of bidirectional long-run Granger causality between all levels of education and GDP. The findings indicate that education, especially at secondary and higher levels, has increased regional prosperity.

Suggested Citation

  • Karatheodoros Anastasios & Tsamadias Constantinos & Pegkas Panagiotis, 2019. "The effects of formal educations’ levels on regional economic growth in Greece over the period 1995–2012," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(1), pages 91-111, February.
    • Handle: RePEc:spr:jahrfr:v:39:y:2019:i:1:d:10.1007_s10037-018-0128-0
    DOI: 10.1007/s10037-018-0128-0
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    More about this item

    Keywords

    Education; Human capital; Panel data; Greece; Regional economic growth;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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