Human Capital and Economic Growth in Asian Countries
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2016, Vol 6, Issue 1
Abstract
This paper investigates the causal relationship between education and GDP in 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. A three-variable model is formulated with capital formation as the third variable. The results show a strong causality from investment and economic growth to education in these countries. Yet, education does not have any significant effects on GDP and investment in short- and long-run. It means that it is the capital formation and GDP that drives education in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher education proxy. It seems that as the number of enrollments raise, the quality of the education declines. Moreover, the formal education systems are not market oriented in these countries. This may be the reason why huge educational investments in these developing countries fail to generate higher growth. By promoting practice-oriented training for students particularly in technical disciplines and matching education system to the needs of the labor market, it will help create long-term jobs and improve the country’s future prospects.
Authors and Affiliations
Alireza Behrooznia, Reza Shafizadeh, Ali Laalbar, Abbas Rezazadeh Karsalari
Corporate Social Responsibility (CSR). A Conceptual and Theoretical Shift
The purpose of the present study is to trace the conceptual evolutionary path of theories and philosophies on Corporate Social Responsibility (CSR) and to reflect on the implications of the development. The study reporte...
Crisis in the Euro Area and the Euro: The game of Giants - Euro vs. Dollar
Sovereign debt crisis in the Euro area, which began officially in Greece, was predicted by over the years for many specialists in the field. It has spread throughout the European continent, spreading it as an epidemic an...
Assessing the Relationship between Budget Participation and Employees’ Performance of Public Universities in Ghana: a Case of University of Education
The study examined the relationship between budget participation and employees’ performance of public universities in Ghana using University of Education as the study area. It therefore seeks to explore the behavioral e...
Cash Flow, Earning Opacity and its Impact on Stock Price Crash Risk in Tehran Stock Exchange
This study examined the role of operating cash flow and its ability in predicting and reducing stock price crash risk. The aim of this study was to investigate efficacy of operating cash flow on predicting and detecting...
Some Issues with the Establishment of Financial Safety Net: Evidence from Bosnia and Herzegovina