Citation:

Boris Aguilera, Carolina San Martín. "Tertiary Education and Economic Growth: How Much Does Physical Capital Matter?" International Research Journal of Economics and Management Studies, Vol. 1, No. 2, pp. 24-32, 2022.

Abstract:

This paper addresses the impact of tertiary education on economic growth through physical capital accumulation. Results indicate the presence of a threshold of physical capital development, particularly in regions such as Northern Africa, Western Asia, and Latin America and the Caribbean, where tertiary education becomes in an important factor to the economic growth. This impact is not found in the absence of a physical capital analysis, which could suggest that the impact of tertiary education on economic growth could dilute when estimating the effect with traditional regressions.

References:

[1] Ahsan Humna, and Haque Emranul, Threshold effects of human capital: Schooling and economic growth, Economics Letters, 156 (1), (2017) 48-52.
[2] Barro Robert, Economic growth in a cross section of countries, The Quarterly Journal of Economics, 106 (2), (1991) 407.00
[3] Barro Robert and Lee Jong, A new data set of educational attainment in the world 1950-2010, Journal of Development Economics, 104 (1), (2013) 184- 198.
[4] Barro Robert and Sala-i Martin Xavier, Technological diffusion, convergence, and growth, National Bureau of Economic Research, 2 (1), (1997) 48-52.
[5] Benos Nikos and Zotou Stefania, Education and economic growth: A meta-regression analysis, World Development, 64 (1), (2014) 669-689.
[6] Caner Mehmet and Hansen Bruce, Instrumental variable estimation of a threshold model, Econometric Theory, 20 (5), (2004) 813-843.
[7] Gyimah-Brempong Kwabena, Paddison Oliver and Mitiku Workie, Higher education and economic growth in Africa, Development Studies, 42 (3), (2006) 509-529.
[8] Mankiw Gregory, Romer David and Weil David, A contribution to the empirics of economic growth, The Quarterly Journal of Economics, 107 (2), (1992) 407–437.
[9] OECD, Education at a glance 2019: OECD indicators, OECD Publishing, (2019).
[10] Ogundari Kolawole and Awokuse Titus.. Human capital contribution to economic growth in Sub-Saharan Africa: Does health status matter more than education?, Economic Analysis and Policy, 58, (2018) 131- 140.
[11] Siddiqui Anjum and Rehman Atiq, The human capital and economic growth nexus in East and South Asia. Applied Economics, 49-28, (2017) 2697- 2710.

Keywords:

Economic Growth, Education, Human capital, Physical capital, Accumulation of Capital.