The contribution of secondary education on regional economic growth in Greece, over the period 1995-2012s

Abstract

This study empirically investigates the causal short-run and long-run relationship between secondary education/human capital endowment and regional economic growth in Greece. It applies the extended neoclassical Mankiw, Romer and Weil's model. Panel data models are used in the estimation based on regional data from 1995 to 2012. Two different proxies of secondary education were used: enrolment rates in secondary education and the proportion of the labour force that has received secondary education. The empirical analysis reveals that secondary education with both proxies has had a positive and statistical significant effect on regional economic growth. The coefficient of elasticity of economic growth with respect to enrolment rates varies from 0.31 to 0.37, and for the proportion of the labour force, it varies from 0.17 to 0.21. The results of the panel vector error correction model support the growth hypothesis that indicates long-run causality from secondary education to economic growth.