Quality of Education and Technological Readiness: Bootstrap Panel Causality Analysis for Northern European Countries

Abstract

ABSTRACT The purpose of this study is to determine the direction of causality between the quality of education and technological development for the selected Northern European countries over the period 2006–2017. To this end, we employ the bootstrap panel causality test. The findings of our study indicate that the quality of education leads to changes in technological readiness in the long run. Interestingly, the reverse direction causal effect is not detected. These findings provide further evidence on – other – positive impacts of the Nordic educational system and are likely to stimulate the interest of policymakers in this field.