Time Series Evidence on Education and Growth: The Case of Guatemala, 1951-2002
38 Pages Posted: 22 Aug 2008
Date Written: December 1, 2004
his article investigates the impact of education on economic growth in Guatemala for the 1951-2002 period. An error-correction model shows that a better-educated labor force has a positive and significant impact on economic growth. A growth-accounting framework demonstrates that human capital explains about 50 percent of output growth. The findings are robust to changes to the conditioning set of variable, while controlling for data issues and endogeneity. The results also compare favorably with the microeconomic evidence.
Keywords: Education, Economic Growth, Econometrics, Guatemala
JEL Classification: I20, C22, C51, O54
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