<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>We investigate whether increasing the education quality causes increases in economic growth allowing poorer countries to catch up. To this end, we extend Nelson-Phelps's classic paper by introducing differences in education quality (proxied by students' performance on the Program for International Student Assessment [PISA] test) in a leader-follower type of growth model with knowledge diffusion. We use students' performance in a standardized international PISA test to measure education quality's impact on economic growth using a panel Vector Error Correction allowing for cross-correlation in the co-integration analysis in a set of all countries observed over the years 1975–2018. Additionally, we consider the possible reverse causality that characterizes economic development and the quality of education. Our results confirm the relevance of education quality as a significant causal factor of economic growth. However, further analyses indicate that the discussed relation is long-run, which may have important implications for policymakers.</p>
</abstract>

We investigate whether increasing the education quality causes increases in economic growth allowing poorer countries to catch up. To this end, we extend Nelson-Phelps's classic paper by introducing differences in education quality (proxied by students' performance on the Program for International Student Assessment [PISA] test) in a leader-follower type of growth model with knowledge diffusion. We use students' performance in a standardized international PISA test to measure education quality's impact on economic growth using a panel Vector Error Correction allowing for cross-correlation in the co-integration analysis in a set of all countries observed over the years 1975–2018. Additionally, we consider the possible reverse causality that characterizes economic development and the quality of education. Our results confirm the relevance of education quality as a significant causal factor of economic growth. However, further analyses indicate that the discussed relation is long-run, which may have important implications for policymakers.

Does an increase in education quality cause developing countries to catch up?

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Does an increase in education quality cause developing countries to catch up?"}

We investigate whether increasing the education quality causes increases in economic growth allowing poorer countries to catch up. To this end, we extend...

Does an increase in education quality cause developing countries to catch up?

Article Category: Empirical Paper

Pubblicato online: 31 dic 2022

Pagine: 393 - 408

Ricevuto: 06 ott 2022

Accettato: 21 nov 2022

DOI: https://doi.org/10.2478/ijme-2022-0028

Parole chiave
economic growth, economics of education, educational policy, international education/studies

© 2022 Łukasz Goczek et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Does an increase in education quality cause developing countries to catch up?

Article Category: Empirical Paper

Pubblicato online: 31 dic 2022

Pagine: 393 - 408

Ricevuto: 06 ott 2022

Accettato: 21 nov 2022

DOI: https://doi.org/10.2478/ijme-2022-0028

Parole chiaveeconomic growth, economics of education, educational policy, international education/studies

© 2022 Łukasz Goczek et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Parole chiave
economic growth, economics of education, educational policy, international education/studies