Education and Economic Growth: A Panel Cointegration Approach in OECD Countries (1980-2008)

The purpose of this study is to investigate the long-run relationship between education and economic growth in the 25 OECD countries over the period from 1980 to 2008 by utilizing the Pedroni and Kao panel cointegration, Pedroni DOLS and FMOLS and Canning-Pedroni causality methods. According to DOLS results the elasticity coefficients of education and economic growth are %0.283 and %2,931 respectively. According to FMOLS results the elasticity coefficients of education and economic growth are %0.25 and %2.82 respectively. While the results of Lamda-Pearson statistics indicate the long-run bilateral causality between education and economic growth, Group statistics indicate the long-run uni-directional causality from economic growth to education. It is concluded that there is a strong cointegration relationship between education and economic growth.