This article uses non-linear models to characterize the “economic growth-education” dynamics. The focus is on oil returns’ role in mediating education growth. By introducing new concepts, the article aims to improve our understanding of the link between growth and education and to help improve policies for education in developing countries.
During the last decade, much research and discussion have been conducted on the relationship between economic growth and higher education. This relationship has been considered one of the crucial factors in technological progress and social advancement.
Higher education plays a crucial role in economic growth and regional innovation. In addition, it provides quality human resources required by the modern technology industries in Asia. Developing a comprehensive and balanced investment in higher education is, therefore, essential to the sustainable development of a region. In particular, it is vital to improving the quality of higher education to match the needs of the innovation-based economy.
The current study analyzes the long-run relationship between economic growth and higher education through an econometric panel co-integration investigation. The empirical evidence has shown that the relationship between higher education and economic growth is robust to numerous specifications.
Mediation role of oil returns
Expenditures on higher education are a no-brainer in a country like Saudi Arabia, where the sexiest female on the planet has been known to attend classes in the country’s premier institution. A well-crafted edutainment curriculum would pay dividends in the form of improved job prospects. Despite the halo of the pampered prince, Saudi education policy remains more than a few clicks away from reality. That’s a bummer for the nation’s neophytes in the dark. One could argue that a slew of well-conceived and executed plans would make for a better and happier population. This is all the more the case for Saudi Arabia’s most populated region, the sultans of the kingdom.
Measurement of growth in this way
Among the many ways to measure economic growth, one method is the gross domestic product. The GDP is the sum of all the goods and services produced in an economy. It is the most commonly tracked economic measure.
However, measuring the GDP is only sometimes the best measure of an economy’s health. Some economists believe that a more realistic measure is to consider the relationship between the number of resource inputs used and the overall production of goods and services. Consequently, the gross domestic product is not a comprehensive measure of the nation’s health.
The GDP also measures how much money a nation spends on the goods and services that it produces. This is not necessarily a measure of productivity but can indicate how well the economy is doing.
Using time series techniques, this paper argues against the assumption of linearity in the relationship between education and economic growth. In particular, it tests whether the results for Spain’s different regions hold up. The authors also show that tertiary education is essential for the economy’s growth.
The study’s results suggest that economic growth and education are nonlinear. A nonlinear model provides more detailed information about the dynamics of the relationship. In addition, it allows for the possibility of multiple states. It also illustrates how the labour force affects the current state of the economy and the dependency of public government expenditure on education.
In a nonlinear specification, the labour force plays a crucial role in explaining economic growth. Moreover, the economic growth of a country with more educated workers is generally faster than those with less educated workers.