Effects of education on economic growth:Evidence from Guatemala

Loening, Josef and Rao, B. Bhaskara and Singh, Rup (2010): Effects of education on economic growth:Evidence from Guatemala.

Abstract

This paper examines the determinants of economic growth in Guatemala, with a particular focus on schooling. Results based on the error-correction methodology show a better educated labour force has a positive and significant impact on economic growth during 1951-2002. Consistent with micro evidence for Guatemala primary education is more important than secondary and tertiary education. These findings are robust while changing the conditioning variables, controlling for data issues and endogeneity. Due to social and political conflicts and the need for institutional environment conducive to growth, the growth rate of output in Guatemala has been low.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic Growth; Education; Error-Correction model; Guatemala
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes

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