Educational Attainment and Economic Growth: Analysis of Panel Data 1980-2010, with Special Attention to Southeast Asian Countries

NURUL WAKHIDAH, Prof. Dr. Samsubar Saleh, M.Soc.Sc.

2016 | Skripsi | ILMU EKONOMI

This study aims to analyse the relationship of educational attainment with the growth of GDP per capita in more than 140 countries in the world, with special attention to Southeast Asian countries. The educational attainment is measured by the average years of schooling of people age 25+ years old from Barro and Lee’s data. This study regresses six 5-years period panel data from 1980-2010 using Pooled Ordinary Least Square (OLS) and Fixed Effects (FE). The finding shows that the change of educational attainment has positive and significant relationship with economic growth. Using interaction variable of educational attainment growth and dummy Southeast Asia, this study finds that the relationship is stronger for Southeast Asian countries than for all countries in general. The initial level of average years of schooling is also statistically significant with positive relationship with economic growth.

This study aims to analyse the relationship of educational attainment with the growth of GDP per capita in more than 140 countries in the world, with special attention to Southeast Asian countries. The educational attainment is measured by the average years of schooling of people age 25+ years old from Barro and Lee’s data. This study regresses six 5-years period panel data from 1980-2010 using Pooled Ordinary Least Square (OLS) and Fixed Effects (FE). The finding shows that the change of educational attainment has positive and significant relationship with economic growth. Using interaction variable of educational attainment growth and dummy Southeast Asia, this study finds that the relationship is stronger for Southeast Asian countries than for all countries in general. The initial level of average years of schooling is also statistically significant with positive relationship with economic growth.

Kata Kunci : educational attainment, years of schooling, economic growth, economic development, Southeast Asian countries