Abstract
This article examines the role of education in explaining the technology-intensive exports of 27 European countries. A comparative analysis of transition and non-transition economies is also conducted in this article. The empirical assessment provides sufficient evidence to support the hypothesized positive link between the stock of population with tertiary education and the share of medium-high and high-technology exports for the full sample of countries, the effect being relatively stronger for the high-technology category. The importance of higher levels of education is further supported by the non-linear relationship between the average years of schooling and technology intensive exports. The empirical findings also reveal a positive and highly significant relationship between the share of population with tertiary education and the export sophistication of the full set of countries. The evidence from country group estimations is weaker. Some supporting evidence is found for the hypothesized role of the quality of education.
Highlights
The importance of fully participating in international markets for a country’s economic development has been established in the literature
Given the differences in the technology intensity of their export baskets, this study provides a comparative analysis of transition and non-transition economies in terms of the hypothesized impact of education on technology intensive export share, and export sophistication
Guided by the theoretical framework discussed above and previous research, two main model specifications are estimated in this paper: Model Specification 1 focuses on the impact of the stock of population (15 and over) with secondary and tertiary education as their highest level attained while Model Specification 2 assesses the effect of average years of schooling on the share of technology intensive exports
Summary
The importance of fully participating in international markets for a country’s economic development has been established in the literature. A regression analysis examining the impact of education on the international competitiveness of 27 European countries in technology-intensive goods, with particular emphasis on comparing transition and non-transition economies is conducted in this paper. In a previous study by Mulliqi et al (2018), tertiary education was found to exert a positive and significant impact on the export market share of the European Economic Area (EEA17), whereas the effect of the stock of population with secondary education was larger in the sample of transition economies of Central and Eastern Europe. With the purpose of modelling and testing the relative importance of a country’s stock of educated labour force on its international competitiveness in technology intensive goods, a country-industry level analysis using medium-high and high technology export data for the period 1995-2010 is conducted in this paper. The last section summarizes the main results and examines policy implications
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