Impact of Education on Economic Growth: Evidence from SAARC Countries

Abstract

The primary objective of this paper is to examine the influence of education on SAARC members' economic growth to estimate panel data periods from 1990 to2019, the current study employed panel unit root such as ADF Fisher Chi-square, LLC and IP&SW and for long-run and short-run co-integration applied PMG approach, Kao (1999) co-integration, and Dumitrescu-Hurlin Panel Causality test. Primary School Enrollment (PSE), Secondary School Enrollment (SSE), and Tertiary School Enrollment (TSE) have a constructive and significant influence on GDPPC growth in the long term but have a negligible outcome in short run. In all three models, negative noteworthy value of ECM suggests junction from the short term to long-run equilibrium. Moreover, there is a unidirectional causal association running from PSE, SSE, and TSE to GDPPC. This study concluded that the government should place a greater emphasis on education to stimulate economic growth.