Effects of Primary, Secondary and Tertiary Education on Economic Growth

80 Pages Posted: 8 Jul 2005

See all articles by Josef Ludger Loening

Josef Ludger Loening

University of Goettingen (Gottingen) - Ibero-America-Institute for Economic Research

Date Written: May 2005

Abstract

This paper investigates the impact of human capital on economic growth in Guatemala during 1951-2002 using an error-correction methodology. The results show a better-educated labor force having a positive and significant impact on economic growth. Consistent with micro studies for Guatemala, primary and secondary education are most important for productivity growth. These findings are robust while changing the conditioning set of the variables, controlling for data issues and endogeneity. Due to an environment of social and political conflict, however, total factor productivity has been slightly negative for the past decades, and there is evidence of a missing complementarity between the country's skills and its technology base. A growth-accounting framework is presented, which takes into account quality changes of physical capital, and differentiates by level of education. It shows that the human capital variables explain more than 50 percent of output growth. Of these, secondary schooling was the predominant determinant of growth.

Keywords: Economic Growth, Education, Econometrics, Guatemala

JEL Classification: I20, C22, C51, O54

Suggested Citation

Loening, Josef Ludger, Effects of Primary, Secondary and Tertiary Education on Economic Growth (May 2005). World Bank Policy Research Working Paper No. 3610. Available at SSRN: https://ssrn.com/abstract=753647 or http://dx.doi.org/10.2139/ssrn.753647

Josef Ludger Loening (Contact Author)

University of Goettingen (Gottingen) - Ibero-America-Institute for Economic Research ( email )

Oeconomicum II/99
Platz der Goettinger Sieben 3
Goettingen, 37073
Germany
+49 (551) 39-8172 (Phone)
+49 (551) 39-8173 (Fax)

HOME PAGE: http://www.iai.wiwi.uni-goettingen.de

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