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Higher Test Scores or More Schooling? Another Look at the Causes of Economic Growth

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  • Theodore R. Breton

Abstract

I use a dynamic augmented Solow model to estimate the effects of students’ test scores and investment in schooling on economic growth rates in 49 countries during 1985-2005. In the complete data set, either average test scores or investment in schooling explain economic growth rates, and more of either causes growth. Further analysis reveals that higher test scores only raised growth rates in countries with low average levels of schooling. In countries with more than 7.5 years of schooling attainment in 1985, more investment in schooling raised growth rates, but higher average test scores did not.

Suggested Citation

  • Theodore R. Breton, 2013. "Higher Test Scores or More Schooling? Another Look at the Causes of Economic Growth," Documentos de Trabajo de Valor Público 11832, Universidad EAFIT.
    • Handle: RePEc:col:000122:011832
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    10. Theodore Breton, 2010. "Schooling and national income: how large are the externalities? Corrected estimates," Education Economics, Taylor & Francis Journals, vol. 18(4), pages 455-456.
    11. Hai-Anh Dang & F. Halsey Rogers, 2008. "The Growing Phenomenon of Private Tutoring: Does It Deepen Human Capital, Widen Inequalities, or Waste Resources?," The World Bank Research Observer, World Bank, vol. 23(2), pages 161-200, April.
    12. Theodore Breton, 2010. "Schooling and National Income: How Large Are the Externalities? Revised Estimates," Documentos de Trabajo de Valor Público 10613, Universidad EAFIT.
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    Cited by:

    1. Campbell, Susanna G. & Üngör, Murat, 2020. "Revisiting human capital and aggregate income differences," Economic Modelling, Elsevier, vol. 91(C), pages 43-64.
    2. Altinok, Nadir & Aydemir, Abdurrahman, 2017. "Does one size fit all? The impact of cognitive skills on economic growth," Journal of Macroeconomics, Elsevier, vol. 53(C), pages 176-190.
    3. Anna Valero, 2021. "Education and economic growth," CEP Discussion Papers dp1764, Centre for Economic Performance, LSE.
    4. Oniovosa Stanley Oghenenyerhovwo, 2018. "The Role of Arts and Social Science Education on the Growth and Development of the Nigerian Economy," Sumerianz Journal of Economics and Finance, Sumerianz Publication, vol. 1(1), pages 1-8, 06-2018.
    5. Theodore R. Breton & Andrew S. Breton, 2021. "Growth in a macro‐Mincer model: Good results with schooling and experience interactions," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 563-581, May.
    6. Breton, Theodore R., 2015. "Human capital and growth in Japan: Converging to the steady state in a 1% world," Journal of the Japanese and International Economies, Elsevier, vol. 36(C), pages 73-89.
    7. Sivropoulos-Valero, Anna Alexandra, 2021. "Education and economic growth," LSE Research Online Documents on Economics 114434, London School of Economics and Political Science, LSE Library.
    8. Anna Valero, 2021. "Education and economic growth," POID Working Papers 006, Centre for Economic Performance, LSE.
    9. Sami Chaabouni & Mounir Ben Mbarek, 2024. "What Will Be the Impact of the COVID-19 Pandemic on the Human Capital and Economic Growth? Evidence from Eurozone," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2482-2498, March.

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    More about this item

    Keywords

    Education Expenditures; Human Capital; Test Scores; Economic Growth;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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