A causality analysis of the link between higher education and economic development
Economics of Education Review Volume 14, Number 4 ISSN 0272-7757 Publisher: Elsevier Ltd
The aim of this article is to shed light on the relationship between higher education and economic development by means of econometric tools designed to evaluate the existence and direction of causality: cointegration and Granger-causality tests. The results show a significant causality from national higher educational effort (proxied by the number of students per capita, i.e. not engaged in productive activities) to economic development for four countries: Sweden (1910–1986), United Kingdom (1919–1987), Japan (1885–1975) and France (1899–1986). However, such a causality link has not been found for Italy (1885–1986) or Australia (1906–1986). This suggests that this relationship is indeed not mechanistic as already pointed out by some social scientists.
de Meulemeester, J.L. & Rochat, D. A causality analysis of the link between higher education and economic development. Economics of Education Review, 14(4), 351-361. Elsevier Ltd.