The Impact of Education on Economic Growth in Guatemala: A Time-Series Analysis Applying an Error-Correction Methodology

Abstract

This paper investigates the impact of human capital on economic growth in Guatemala through the application of an error-correction methodology. Two channels are analyzed, by which human capital is expected to influence growth. A better-educated labor force appears to have a positive and significant impact on economic growth both via factor accumulation as well as on the evolution of total factor productivity. The results have been found robust concerning data issues and parameter stability.

Keywords: Education, Growth, Econometrics, Guatemala

JEL Classification: I20, C22, C51, 054