Main Article Content

Abstract

This study analyzes the effects of education on economic growth in different countries grouped by income level. The key variables are cointegrated and integrated of order one. Hence, we employ the panel error correction model (PECM) to estimate the short-run and the long-run relationships. Results show differences in the impact of education across income levels. Primary education has been shown to be beneficial in the short and long run. Surprisingly, tertiary education had a negative effect on economic growth for all except the low-income group. Granger causality also suggests the direction of causation is that of education on economic growth and not vice versa.

Keywords

Human capital educational impact economic growth economic development

Article Details

Author Biographies

Haya Khan, College of Business Administration-Yanbu, Taibah University, Kingdom of Saudi Arabia

Haya is a senior economist who is proficient in advanced research and data analysis and an expert in econometrics. She serves as an assistant professor of economics at Taibah University Yanbu. She is proficient at employing programming languages such as Eviews, STATA, SQL, and R to analyze complex datasets on financial and economic issues to help develop practical and innovative solutions that have a positive impact on society. Her dissertation research focused on the behavior of economic growth and its volatility, utilizing methods and concepts from global, regional, and development economics to comprehend the behavioral determinants and policy influences that contribute to economic growth fluctuations. She teaches Macroeconomics, Microeconomics, and Money and Banking, which covers a variety of topics, including the economy on an individual and business level, financial instruments as a result of the crisis, monetary and fiscal policy, and the financial or payment system.

Jebaraj Asirvatham, Agribusiness Economics, Southern Illinois University Carbondale, Illinois, USA

Jebaraj Asirvatham, SIU Carbondale Associate Professor of Agribusiness Economics Jeb is an applied economist and works in multiple research areas, including agricultural marketing, agricultural finance, economic development, and nutrition and health economics. He is an associate professor of agribusiness economics at SIU Carbondale. Jeb’s research work includes estimating regional premiums of specialty crops, exchange rate and agricultural trade, microfinance and business income, sustainable attitudes and behaviors among college students, women empowerment in developing nations, food environment in schools, peer effects in health among schoolchildren, and the impacts of campaign and education policies. In his research work, Jeb uses science-based evidence to model economic relationships. He has also developed mathematical models based on neuroscientific findings to explain dietary behaviors. Jeb’s master’s thesis and a paper from his dissertation received international awards. He teaches Financial Management in Agriculture and Marketing and Pricing of Agriculture Products.

How to Cite
Khan, H., & Asirvatham, J. (2024). Short- and Long-Run Effects of Education on Economic Growth: A Panel Error Correction Analysis. European Journal of Economics, 4(2), 47–65. https://doi.org/10.33422/eje.v4i2.847