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Implications of Quality of Schooling on Economic Growth and Convergence – A System Dynamics Perspective

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  • Meeta Keswani Mehra
  • Swati Saini

Abstract

This paper formulates a growth model to study the interlinkages among quality of schooling, human capital and technical progress of a stylised developing economy such as India. The simulation results reveal that under the technology regimes of innovation and imitation, the quality of schooling triggers a child quantity–quality trade-off wherein parents invest in educating their children and bear lesser number of children when schooling quality exceeds an endogenously determined threshold. Consequently, the stylised economy reaches a self-sustaining growth path under both the regimes by investing in human capital of the young generation in the long run.

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  • Meeta Keswani Mehra & Swati Saini, 2020. "Implications of Quality of Schooling on Economic Growth and Convergence – A System Dynamics Perspective," Global Economic Review, Taylor & Francis Journals, vol. 49(1), pages 97-126, January.
    • Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:97-126
    DOI: 10.1080/1226508X.2019.1699845
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