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Human capital and economic growth revisited: A dynamic panel data study

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Abstract

This paper examines the role of human capital on economic growth by using a large panel of data including 93 countries. Given the cross-sectional character in most of the relevant studies, there is a possibility that when the long-run dynamics are considered, education might not be a significant determinant of growth. Following a dynamic panel data approach, the analysis indicates that education has, indeed, a significant and positive long-run effect on economic growth. Moreover, the size of this effect is stronger as the level of education (primary, secondary, and tertiary) increases. This has a straightforward policy implication that governments taking actions towards an expansion of their higher education may well expect larger gains in terms of higher economic growth in their countries.

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Authors and Affiliations

  1. City University, United Kingdom

    G. Agiomirgianakis

  2. The University of Reading, United Kingdom

    D. Asteriou

  3. London School of Economics, United Kingdom

    V. Monastiriotis

Authors
  1. G. Agiomirgianakis
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  2. D. Asteriou
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  3. V. Monastiriotis
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Additional information

This is a revised version of a paper presented at the Fifty-first International Atlantic Economic Conference, Athens, Greece, March 13–20, 2001, and also at the conference on Post-Euro Era at the University of Ioannina, Greece, January 27–28, 2000. The authors would like to thank participants in both conferences and, in particular, Nick Apergis for his comments and useful suggestions on earlier drafts. The authors remain responsible for any shortcomings of the paper.

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Agiomirgianakis, G., Asteriou, D. & Monastiriotis, V. Human capital and economic growth revisited: A dynamic panel data study. International Advances in Economic Research 8, 177–187 (2002). https://doi.org/10.1007/BF02297955

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