Education and Economic Growth: an Empirical Analysis of Interdependencies and Impacts Based on Panel Data

Authors

  • Liana SON West University of Timisoara Author
  • Gratiela Georgiana NOJA <p>West University of Timisoara</p> Author
  • Mihai RITIVOIU Author
  • Roxana TOLTEANU <p>West University of Timisoara</p> Author

Keywords:

Human capital, economic growth, education, schooling, knowledge

Abstract

The paper focuses particularly on proving that education can lead to economic growth within five groups of EU Member States. Our study reviews the human capital from its quantitative (years of study) and qualitative (education quality) dimensions, the empirical panel data analysis being based on three double-log models developed and processed through random and fixed effects. The main explanatory variables comprise the GDP per capita, the physical capital, the average number of years of schooling (for all three levels, especially tertiary education), the quality of education measured through scores on skill tests, the degree of international openness, life expectancy and inflation rate. Our results highlight that education is extremely important in positively influencing economic growth. Within this framework, the results emphasize that within the European Union there is a strong positive influence of education on economic growth, expressed mainly through an increase in GDP per capita growth rate, especially when the human capital is expressed by qualitative variables, while the quantitative variable’s importance is being greatly reduced.

Author Biographies

  • Liana SON, West University of Timisoara

    Faculty of Economics and Business Administration

    Department of Marketing and International Economic Relations

    Professor PhD.

  • Gratiela Georgiana NOJA, <p>West University of Timisoara</p>

    Faculty of Economics and Business Administration

    Department of Marketing and International Economic Relations

    Lecturer PhD

  • Mihai RITIVOIU

    Faculty of Economics and Business Administration

    PhD. Student
  • Roxana TOLTEANU, <p>West University of Timisoara</p>

    Faculty of Economics and Business Administration

    PhD. Student

References

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Summer issue of Timisoara Journal of Economics and Business: volume 6 (issue 19).

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Published

2013-08-16

Issue

Vol. 6 No. 19 (2013)

Section

Articles

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How to Cite

Education and Economic Growth: an Empirical Analysis of Interdependencies and Impacts Based on Panel Data. (2013). Timisoara Journal of Economics and Business, 6(19), 39-54. https://www.tjeb.ro/index.php/tjeb/article/view/TJEB19_Aug2013_39to54