The Education/Growth Relationship: Evidence from Real State Panel Data

Abstract

This article employs 1963–97 panel data for the 48 contiguous U.S. states (and District of Columbia) to examine the relationship between real personal income and real education expenditures as well as that between real personal income and six measures of real research and development expenditures. Bivariate regressions are employed to determine whether the information content between real education expenditures and real income runs from real income to real education spending or vice versa. The authors find that when data are relative to the U.S. average, the direction of information content runs from real state‐level education expenditures to real state‐level income. (JEL I2, H72)

Dilemma of Natural Resource Abundance: A Case Study of Kuwait

“…One possible reason that drives the positive relationship between education and PGDP is that knowledge and skills attained through education are conducive to the improvement in workers' productivity and facilitate the absorption of superior technologies from other leading countries, which is essential for enhancing human capital and ensuring good standards of living, thus promoting PGDP (Aghion et al, 2009;Ali & Jabeen, 2015;Hanushek & Woessmann, 2010;Ozturk, 2001). Our findings agree with the findings of several studies, such as those by Delalibera and Ferreira (2019), Appiah, (2017), Faruq andTaylor (2011), Keller (2006), Bauer et al (2006), Bensi et al (2004), Petrakis and Stamatakis (2002), and Krueger and Lindahl (2001).…”

“…This supports an important principle that states that education, knowledge, and skills are essential for technology and innovation, which improve productivity, and that educated workers are more capable of carrying out jobs that need critical thinking, skills, and literacy, all of which lead to higher productivity (Ciccone & Papaioannou, 2009;Gennaioli et al, 2013). Several papers have revealed the same results, including Kumar and Chen (2013), Liberto et al (2011), Nachega and Fontaine (2006), Bauer et al (2006), Bensi et al (2004), and Aiyar and Feyrer (2002).…”

Relative Teacher Salaries and the Decision to Teach

“…In addition to increasing class sizes and creating teacher shortages, the effects of low educational funding on teacher salaries may have adverse effects on teacher quality. To the extent educational outcomes are harmed by the difficulty in retaining effective teachers, low funding could reduce long‐term state economic productivity and growth (Bensi, Black, and Dowd ; McMahon ). State differences in teacher salaries and educational funding could be further examined for their effects on state educational and economic outcomes in future research.…”

Education and economic growth in the United States: cross-national applications for an intra-national path analysis

“…They indicate mixed findings but generally reveal positive relationships between educational spending and per capita income growth. Bensi et al (2004), Berry and Kaserman (1993), Crain (2003), Dholakia and Harlam (1994), and Moomaw et al (2002) demonstrate that educational expenditures have a positive relationship with per capita income, while Jones ' (1990) work shows that educational spending has a significant negative association with change in per capita income from 1969 to 1974 (but not during three other five-year periods). Quan and Beck (1987) show that educational expenditures have positive, negative, or insignificant relationships with per capita income depending on the region of the country, the lag period used to determine the effects of spending, and whether one is looking at K12 expenditures or spending on higher education.…”