The Growth Effects of Education in CEE and Balkan Countries
|Author:||Mgr. Marija Radonjić|
|Year:||2014 - winter|
|Leaders:|| PhDr. Jaromír Baxa Ph.D.
|Work type:|| Masters
|Awards and prizes:||M.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance.|
|Abstract:||This study applies the cross
country growth accounting regressions derived from the augmented
Swan model to ascertain the growth effects of education in CEE and Balkan countries.
We firstly test whether the total stock or accumulation of
education matters more for
corresponding countries’ growth and afterwards we decompose the total stock into educational
stocks at primary, secondary and tertiary levels to test whether the disaggregated educational
levels have different growth effects. We
do so by applying the panel fixed effects technique on
17 CEE countries during the 1990
2010 period. In addition, we address the endogeneity of
education by using the lags of different educational proxies as instruments. The results suggest
that the averag
e stock of education is significantly contributing to economic growth of CEE
countries with the biggest growth effect of tertiary education. Regarding the Balkan countries
only, the growth effect of education is almost a null.
We conclude that one cannot h
economic growth without a good educational system and efficient usage of human capital. Thus,
the policy implications should be related to the proper identification of the quality of educational
governance, problem of mismatch on labor market and bette
r utilization of human capital.