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
An Analytical Study of the Impact of Inflation on Economic Growth in Nigeria (1970-2016)
Inflation discourages savings and investment, it favours debtors at the expense of creditors, fixed income earners are worse off during inflation and it leads to unfavourable balance of payment as the export becomes dear...
The Determinants of Financial Performance in the Romanian Insurance Market
Analysis of Budgetary and Fiscal Convergence Scenarios for Romania and Bulgaria in the Period 2007-2016
The Value Relevance of IFRS in the UAE Banking Industry: Empirical Evidence from Dubai Financial Market, 2008-2013
The objective of this paper is to examine the value relevance of accounting information for the banks listed in the Dubai Financial Market (DFM) for the period 2008 - 2013. Empirical tests are based on the return and the...
Linking Risk Management Practices and Strategies to Performance: Case Study: Ceramic and Tiles Industry