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The effects of formal educations’ levels on regional economic growth in Greece over the period 1995–2012

  • Karatheodoros AnastasiosEmail author
  • Tsamadias Constantinos
  • Pegkas Panagiotis
Original Paper
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Abstract

This study empirically investigates the relationship among the levels of formal education and regional economic growth in Greece, over the period 1995–2012. It uses a panel data set, which includes 13 regions. The proxy of human capital is the proportion of the employees that has received primary, secondary and higher education. Also, the study estimates the effect of the level of education on economic growth in low and high-income Greek regions, separately. The empirical analysis reveals that in the long-run considering all regions, secondary and higher education have had a positive effect on regional GDP, while primary education has had a negative effect. Regarding the two subgroups of regions, the results show that in low-income regions, secondary education has more significant effect than higher education, while in high-income regions higher education contributes more to GDP, than secondary education. The results also suggest that there is evidence of bidirectional long-run Granger causality between all levels of education and GDP. The findings indicate that education, especially at secondary and higher levels, has increased regional prosperity.

Keywords

Education Human capital Panel data Greece Regional economic growth 

JEL Classification

C23 I25 J24 O18 O47 R11 

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • Karatheodoros Anastasios
    • 1
    Email author
  • Tsamadias Constantinos
    • 1
  • Pegkas Panagiotis
    • 2
  1. 1.Department of Home Economics and Ecology, School of Environment, Geography and Applied EconomicsHarokopio UniversityKalithea, AthensGreece
  2. 2.Department of Computer Science, School of ScienceUniversity of ThessalyLamiaGreece

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