2012
DOI: 10.1016/j.econedurev.2011.11.004
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The role of educational quality and quantity in the process of economic development

Abstract: We develop a theory of human capital investment to study the channels through which students react to school quality when deciding on investments in secondary education and above, and to study how educational quality affects economic growth. In a dynamic general equilibrium closed economy, primary education is mandatory but there is an opportunity to continue on in education, which is a private choice. High-quality education increases the returns to schooling, and hence the incentives to accumulate human capit… Show more

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Cited by 73 publications
(33 citation statements)
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“…As the quality of labor force is mainly measured by the level of education, it can be inferred that there is a positive relation between economic growth and education. Similar results are found in Cai (1999), Lin (2003), Grundey and Sarvutytė (2007), and Castelló-Climent and Hidalgo-Cabrillana (2012). Cai (1999) uses the data from 194 countries (territories) to examine the contribution of education to economic growth between 1965 and 1990.…”
Section: Impacts Of Education On Economic Growthsupporting
confidence: 56%
See 1 more Smart Citation
“…As the quality of labor force is mainly measured by the level of education, it can be inferred that there is a positive relation between economic growth and education. Similar results are found in Cai (1999), Lin (2003), Grundey and Sarvutytė (2007), and Castelló-Climent and Hidalgo-Cabrillana (2012). Cai (1999) uses the data from 194 countries (territories) to examine the contribution of education to economic growth between 1965 and 1990.…”
Section: Impacts Of Education On Economic Growthsupporting
confidence: 56%
“…Lin (2003) examines the positive effect of education on economic growth in Taiwan during 1965 and 2000 with average schooling years as the main explanatory variable. Moreover, Castelló-Climent and Hidalgo-Cabrillana (2012) conduct an estimation of production function using cross-country data and point out that both the quality and the quantity of education have positive effects on economic growth in the long run. However, a number of papers argue that economic growth in developing countries is mainly driven by capital investment, while the human capital effect brought by education is relatively weak.…”
Section: Impacts Of Education On Economic Growthmentioning
confidence: 99%
“…In modern economies, one of the key determinants of economic growth is human capital (e.g., (Hanushek and Kimko, 2000;Barro, 2001;Krueger and Lindahl, 2001;Castelló-Climent and Hidalgo-Cabrillana, 2012)). There are many studies on estimating the impact of education on earnings.…”
Section: Group 1 Improving Human Capitalmentioning
confidence: 99%
“…Higher education systems are considered as effective means in social development (1,2), and are experiencing significant changes due to paradigmatic changes in economic and technological fields as well as the emergence of macro trends (3). These systems are no longer limited to ordinary classes (4).…”
Section: Contextmentioning
confidence: 99%