Economic Growth and Development Effect of Education: Cointegration Analysis for Turkey

Ahmet Oğuz,Oğuz Kara,Üzeyir Aydin

doi:10.5901/mjss.2014.v5n13p369

Ahmet Oğuz, Oğuz Kara + Show 1 more

Open Access

https://doi.org/10.5901/mjss.2014.v5n13p369

Copy DOI

Abstract

Economic theory proposes that there is a connection between education level and efficiency, and a person contribute to the society related with his education level. Also it is accepted that characteristics of education activities effects economic, social and cultural development of the society. Human capital is of great importance for social and economic progress. Qualified work force is resulted from the education level. Investment for the human capital implied education investments which provide the increase literacy rate and information-ability levels. This is really important for both underdeveloped and developed countries. So education investments should be analyzed for understanding the effects on growth and development. Therefore, the aim of this paper is to investigate the relationship between education investments and economic growth for Turkey. We used cointegration technique for the period from 1980 to 2011. DOI: 10.5901/mjss.2014.v5n13p369

Highlights

Human capital is the most important production factor from the beginning of the economics theory
Features of the time series of the data was examined with Dickey-Fuller (DF) and Augmented Dickey-Fuller (ADF) unit root test that are commonly used (Gujarati, 1999, Kutlar, 1998)
The empirical results obtained from Turkey's annual data for the period 1980-2011, reveals the direction of causality vary according to the variables used

Summary

Introduction

Human capital is the most important production factor from the beginning of the economics theory. Qualified work force is of great importance for the twenty-first century. Qualified work force is resulted from the education level. Investment for the human capital implied education investments. Education investments provide the increase literacy rate and information-ability levels. This is really important for both underdeveloped and developed countries. Education investments should be analyzed for understanding the effects on growth and development. For these purposes, we tested the long-run relationship between education investments and economic growth using cointegration technique.

Objectives

Results

Conclusion