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HIGHER EDUCATION AND ECONOMIC GROWTH: AN EMPRICAL INVESTIGATION OF COINTEGRATION AND CAUSALITY FOR TURKISH ECONOMY

Year 2010, Issue: 36, 1 - 14, 20.05.2015

Ekrem Erdem Can Tuğcu

Abstract

Recently, studies about the effects of higher education on economic growth in developing countries are taking more attention. In this paper, long-run and causal relationships between higher education and economic growth in Turkish economy over 1970–2008 period were analysed. For this purpose, two higher education indicators were regressed over real GDP using ARDL (Autoregressive Distributed Lag) bounds testing approach and the causality between these variables was investigated by Dolado and Lütkepohl’s style Granger causality test. Results showed that, higher education is cointegrated to economic growth and either higher education or economic growth has significant causal effects on each other.

Keywords

Higher Education Economic Growth Cointegration Causality.

References

  • ASTERIOU, Dimitros., and G. Myron AGIOMIRGIANAKIS; (2001), “Hu- man Capital and Economic Growth: Time Series Evidence From Gre- ece”, Journal of Policy Modeling, 23(5), pp. 481-489.
  • BABATUNDE, Musibau Adetunji and Rasak Adetunji ADEFABI; (2005), “Long-run Relationship Between Education and Economic Growth In Nigeria: Evidence From The Johansen’s Cointegration Approach”, Regional Conference On Education In West Africa: Constraints and Opportunities, Dakar, Senegal.
  • BAHMANI-OSKOOEE, Mohsen and Brooks, Taggert J.; (1999), “Bilateral J– Curve between US and Her Trading Partners”, Weltwirtschaftliches Archiv, 135, pp. 156–165.
  • BARRO, Robert J., and Xavier SALA-I MARTIN; (1995), Economic Growth, MIT Press, Cambridge MA, 278p.
  • BECKER, Gary S.; (1962), “Investment in Human Capital: A Theoretical Analysis”, The Journal of Political Economics, 70(5), pp. 9-49.
  • BHANDARI, Bornali and Bradley R. CURS; (2007), “The Roles of Public Higher Education Expenditure and The Privatization of The Higher Education On U.S. States Economic Growth Data”, Avaliable at: http://web. misso- uri.edu/~cursb/research/Bhandari_Curs_SEA_2007-11-16.pdf.
  • BLOOM David; David CANNING and Kevin CHAN; (2005), “Higher Educa- tion and Economic Development In Africa”, Worldbank Report, No: 1451.
  • BOOTH, G. Geoffrey and Cetin CINER; (2005), “German dominance In The European Monetary System: A Reprise Using Robust Wald Tests”, Applied Economics Letters, 12, pp. 463–466.
  • BROWN, R. L., J. DURBIN, J. M. EVANS; (1975), “Techniques For Testing The Constancy of Regression Relationships Over Time”, Journal of The Royal Statistical Society: Series B, 37(2), pp. 149-192.
  • DE MEULEMEESTER; Jean-Luc and Denis ROCHAT; (1995), “A Causality Analysis of The Link Between Higher Education and Economic Deve- lopment”, Economics of Education Review, 14(4), pp. 351-361.
  • DENISON, Edward.; (1967), Why Growth Rates Differ: Post-War Expe- rience in Nine Countries, Brookings Institutions, Washington, D.C., 324p.
  • DENIZ, Zeynep and A. Suat DOGRUEL; (2008), “Disaggregated Education
  • Data and Growth: Some Facts from Turkey and MENA Countries”,
  • Topics in Middle Eastern and North African Economies (electron
  • ic journal), 10, Available at: http://www.luc.edu/orgs/meea/ vol- ume10/ meea10.html.
  • DOLADO, Juan J. and Helmut LÜTKEPOHL; (1996), “Making Wald Tests Work for Cointegrated VAR Systems”, Econometric Reviews, 15, pp. 369–86.
  • ENGLE, Robert F., and Clive W.J. GRANGER; (1987), “Cointegration and Error-Correction: Representation, Estimation and Testing”, Econo- metrica, 55, pp. 251-276.
  • FRANCIS, Brian and Sunday IYARE; (2006), “Education and Development In The Caribbean: A Cointegration and Causality Approach”, Econo- mics Bulletin, 15(2), pp. 1-13.
  • JAOUL, Magali; (2002), “Higher Education and Economic Growth In France Since The Second World War”, Historical Social Research, 27(4), pp. 108-124.
  • JOHANSEN, Soren and Katarina JUSELIUS; (1990), “Maximum Likelihood Estimation and Inference On Cointegration with Applications To The Demand for Money”, Oxford Bulletin of Economics and Statistics, 52(2), pp. 169–210.
  • KELLER, Katarina R. I.; (2006), “Investment In Primary, Secondary, and Hig- her Education and The Effects On Economic Growth”, Contempo- rary Economic Policy, 24(1), pp. 18-34.
  • KHORASGANI, Mahdi Fadaee; (2008), “Higher Education Development and Economic Growth In Iran”, Education, Business and Society: Con- temporary Middle Eastern Issues, 1(3), pp. 162-174.
  • KUI, Liu; (2006), “The Interactive Casuality Between Education and Economic Growth In China”, SSRN Working Papers, Avaliable at: http://ssrn.com/abstract=920624.
  • LIN, Tin-Chun; (2004), “The Role of Higher Education In Economic Develop- ment: An Empirical Study of Taiwan Case”, Journal of Asian Eco- nomics, 15, pp. 355–371.
  • LUCAS, Robert E.; (1988), “On The Mechanics of Economic Development” Journal of Monetary Economics, 22, pp. 3-42.
  • MANKIW, N. Gregory, David ROMER, David N. NEIL; (1992), “A Contribu- tion To The Empirics of Economic Growth” The Quarterly Journal of Economics, 107(2), pp. 407-437.
  • NARAYAN, Paraseh Kumar and Russell SMYTH; (2006), “Higher Education,
  • Real Income and Real Investment in China: Evidence From Granger
  • Causality Tests”, Education Economics, 14(1), pp. 107–125.
  • PESARAN, M. Hashem, Yongcheol SHIN and Richard J. SMITH; (2001),
  • “Bounds Testing Approaches to the Analysis of Level Relationships”,
  • Journal of Applied Econometrics, 16, pp. 289–326.
  • PESARAN, M. Hashem and Bahram PESARAN; (1997), Working with Mic- rofit 4: Interactive Econometric Analysis, Oxford University Press, Oxford, 511s.
  • PRADHAN, Rudra Prakash; (2009), “Education and Economic Growth In In- dia: Using Error-correction Modelling”, International Research Jo- urnal of Finance and Economics, 25, pp. 139-147.
  • REBELO, Sergio T.; (1991), “Long-run Policy Analysis and Long-run Growth”, Rochester Center For Economic Research Working Pa- per, No: 443.
  • ROMER, Paul M.; (1990), “Endogenous Technological Change”, The Journal of Political Economy, 98(5), pp. 71-102.
  • SANDERS, Jon; (2003), “Does Spending on Higher Education Drive Economic Growth? 20 Years of Evidence Reviewed”, Goldwater Institute Po- licy Report, No: 181.
  • SARI, Ramazan and Ugur SOYTAS; (2006), “Income and Education in Tur- key: A Multivariate Analysis”, Education Economics, 14(2), pp. 181-196.
  • SCHULZ, Theodore H.; (1962), “Reflections on Investment in Man”, The Journal of Political Economics, 70(5), pp. 1-8.
  • SMITH, Adam; (1776), An Inquiry Into the Nature and Causes of the We- alth of Nations, Liberty Classics, Indianapolis, Internet Address: http://books.google.com/books?id=jKr4NWJERbIC&printsec=frontco ver&tr&source=gbs_atb#v=onepage&q&f=false.

YÜKSEKÖĞRETİM VE EKONOMİK BÜYÜME: TÜRK EKONOMİSİ İÇİN BİR EŞBÜTÜNLEŞME VE NEDENSELLİK ARAŞTIRMASI

Year 2010, Issue: 36, 1 - 14, 20.05.2015

Ekrem Erdem Can Tuğcu

Abstract

Son yıllarda gelişmekte olan ülkelerde yüksek öğretimin ekonomik büyüme üzerindeki etkilerini konu alan çalışmalar daha fazla ilgi çekmektedir. Bu çalışmada Türk ekonomisinde 1970-2008 döneminde yüksek öğretim ve ekonomik büyüme arasındaki uzun dönemli ve nedensel ilişkiler analiz edilmiştir. Söz konusu amaç için iki yüksek öğretim göstergesi ARDL sınır testi yaklaşımı kullanılarak reel GSYİH üzerine regrese edilmiş ve değişkenler arasındaki nedensellik ilişkisi Dolado ve Lütkepohl tarzı Granger nedensellik testi ile araştırılmıştır. Sonuçlar Türk ekonomisinde yüksek öğretim ile ekonomik büyümenin eşbütünleşik ve hem yüksek öğretimin hem de ekonomik büyümenin birbirleri üzerinde anlamlı nedensel etkileri olduğunu göstermiştir

Keywords

-

References

  • ASTERIOU, Dimitros., and G. Myron AGIOMIRGIANAKIS; (2001), “Hu- man Capital and Economic Growth: Time Series Evidence From Gre- ece”, Journal of Policy Modeling, 23(5), pp. 481-489.
  • BABATUNDE, Musibau Adetunji and Rasak Adetunji ADEFABI; (2005), “Long-run Relationship Between Education and Economic Growth In Nigeria: Evidence From The Johansen’s Cointegration Approach”, Regional Conference On Education In West Africa: Constraints and Opportunities, Dakar, Senegal.
  • BAHMANI-OSKOOEE, Mohsen and Brooks, Taggert J.; (1999), “Bilateral J– Curve between US and Her Trading Partners”, Weltwirtschaftliches Archiv, 135, pp. 156–165.
  • BARRO, Robert J., and Xavier SALA-I MARTIN; (1995), Economic Growth, MIT Press, Cambridge MA, 278p.
  • BECKER, Gary S.; (1962), “Investment in Human Capital: A Theoretical Analysis”, The Journal of Political Economics, 70(5), pp. 9-49.
  • BHANDARI, Bornali and Bradley R. CURS; (2007), “The Roles of Public Higher Education Expenditure and The Privatization of The Higher Education On U.S. States Economic Growth Data”, Avaliable at: http://web. misso- uri.edu/~cursb/research/Bhandari_Curs_SEA_2007-11-16.pdf.
  • BLOOM David; David CANNING and Kevin CHAN; (2005), “Higher Educa- tion and Economic Development In Africa”, Worldbank Report, No: 1451.
  • BOOTH, G. Geoffrey and Cetin CINER; (2005), “German dominance In The European Monetary System: A Reprise Using Robust Wald Tests”, Applied Economics Letters, 12, pp. 463–466.
  • BROWN, R. L., J. DURBIN, J. M. EVANS; (1975), “Techniques For Testing The Constancy of Regression Relationships Over Time”, Journal of The Royal Statistical Society: Series B, 37(2), pp. 149-192.
  • DE MEULEMEESTER; Jean-Luc and Denis ROCHAT; (1995), “A Causality Analysis of The Link Between Higher Education and Economic Deve- lopment”, Economics of Education Review, 14(4), pp. 351-361.
  • DENISON, Edward.; (1967), Why Growth Rates Differ: Post-War Expe- rience in Nine Countries, Brookings Institutions, Washington, D.C., 324p.
  • DENIZ, Zeynep and A. Suat DOGRUEL; (2008), “Disaggregated Education
  • Data and Growth: Some Facts from Turkey and MENA Countries”,
  • Topics in Middle Eastern and North African Economies (electron
  • ic journal), 10, Available at: http://www.luc.edu/orgs/meea/ vol- ume10/ meea10.html.
  • DOLADO, Juan J. and Helmut LÜTKEPOHL; (1996), “Making Wald Tests Work for Cointegrated VAR Systems”, Econometric Reviews, 15, pp. 369–86.
  • ENGLE, Robert F., and Clive W.J. GRANGER; (1987), “Cointegration and Error-Correction: Representation, Estimation and Testing”, Econo- metrica, 55, pp. 251-276.
  • FRANCIS, Brian and Sunday IYARE; (2006), “Education and Development In The Caribbean: A Cointegration and Causality Approach”, Econo- mics Bulletin, 15(2), pp. 1-13.
  • JAOUL, Magali; (2002), “Higher Education and Economic Growth In France Since The Second World War”, Historical Social Research, 27(4), pp. 108-124.
  • JOHANSEN, Soren and Katarina JUSELIUS; (1990), “Maximum Likelihood Estimation and Inference On Cointegration with Applications To The Demand for Money”, Oxford Bulletin of Economics and Statistics, 52(2), pp. 169–210.
  • KELLER, Katarina R. I.; (2006), “Investment In Primary, Secondary, and Hig- her Education and The Effects On Economic Growth”, Contempo- rary Economic Policy, 24(1), pp. 18-34.
  • KHORASGANI, Mahdi Fadaee; (2008), “Higher Education Development and Economic Growth In Iran”, Education, Business and Society: Con- temporary Middle Eastern Issues, 1(3), pp. 162-174.
  • KUI, Liu; (2006), “The Interactive Casuality Between Education and Economic Growth In China”, SSRN Working Papers, Avaliable at: http://ssrn.com/abstract=920624.
  • LIN, Tin-Chun; (2004), “The Role of Higher Education In Economic Develop- ment: An Empirical Study of Taiwan Case”, Journal of Asian Eco- nomics, 15, pp. 355–371.
  • LUCAS, Robert E.; (1988), “On The Mechanics of Economic Development” Journal of Monetary Economics, 22, pp. 3-42.
  • MANKIW, N. Gregory, David ROMER, David N. NEIL; (1992), “A Contribu- tion To The Empirics of Economic Growth” The Quarterly Journal of Economics, 107(2), pp. 407-437.
  • NARAYAN, Paraseh Kumar and Russell SMYTH; (2006), “Higher Education,
  • Real Income and Real Investment in China: Evidence From Granger
  • Causality Tests”, Education Economics, 14(1), pp. 107–125.
  • PESARAN, M. Hashem, Yongcheol SHIN and Richard J. SMITH; (2001),
  • “Bounds Testing Approaches to the Analysis of Level Relationships”,
  • Journal of Applied Econometrics, 16, pp. 289–326.
  • PESARAN, M. Hashem and Bahram PESARAN; (1997), Working with Mic- rofit 4: Interactive Econometric Analysis, Oxford University Press, Oxford, 511s.
  • PRADHAN, Rudra Prakash; (2009), “Education and Economic Growth In In- dia: Using Error-correction Modelling”, International Research Jo- urnal of Finance and Economics, 25, pp. 139-147.
  • REBELO, Sergio T.; (1991), “Long-run Policy Analysis and Long-run Growth”, Rochester Center For Economic Research Working Pa- per, No: 443.
  • ROMER, Paul M.; (1990), “Endogenous Technological Change”, The Journal of Political Economy, 98(5), pp. 71-102.
  • SANDERS, Jon; (2003), “Does Spending on Higher Education Drive Economic Growth? 20 Years of Evidence Reviewed”, Goldwater Institute Po- licy Report, No: 181.
  • SARI, Ramazan and Ugur SOYTAS; (2006), “Income and Education in Tur- key: A Multivariate Analysis”, Education Economics, 14(2), pp. 181-196.
  • SCHULZ, Theodore H.; (1962), “Reflections on Investment in Man”, The Journal of Political Economics, 70(5), pp. 1-8.
  • SMITH, Adam; (1776), An Inquiry Into the Nature and Causes of the We- alth of Nations, Liberty Classics, Indianapolis, Internet Address: http://books.google.com/books?id=jKr4NWJERbIC&printsec=frontco ver&tr&source=gbs_atb#v=onepage&q&f=false.
There are 40 citations in total.

Details

Primary Language English
Journal Section Makaleler
Authors

Ekrem Erdem This is me

Can Tuğcu This is me

Publication Date May 20, 2015
Published in Issue Year 2010 Issue: 36

Cite

APA Erdem, E., & Tuğcu, C. (2015). HIGHER EDUCATION AND ECONOMIC GROWTH: AN EMPRICAL INVESTIGATION OF COINTEGRATION AND CAUSALITY FOR TURKISH ECONOMY. Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi(36), 1-14.

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