The Nexus for Education on Economic Growth: The Case of Turkey

Purpose – Human capital has consistently been recognized as one of the major factors driving the economic growth of a nation. It is essential to make the education sector, which plays a major role in development of human capital, more responsive towards the changing demands of an economy. Extensive literature on this subject presented a close relationship between role of education and economic growth of the nation. The present study examines the impact of Turkey’s education sector on the economic performance of the country for the time period 1999-2016. Additionally this study investigated the inverse relationship between them i.e. whether the rising economic growth of Turkey is also contributing significantly in education. Design/methodology/approach – Economic growth theories including classical Cobb Douglas model search impact of education level on economic growth. This paper studies whether schooling rate, vocational education and other education improvements had positive impacts on economic growth for Turkish economy. In order to search the relation between human capital and economic growth trend analyses, stationarity analyses, ARIMA modelling, causality search and cointegration tests made for education variables in Turkey. Findings – Improvements in education level has positive impacts on economic growth for Turkish economy. The econometric analyses supports that hypothesis. Discussion – Human capital h as s trong i mpact o n e conomic d evelopment f or f uture s uccess o f Turkish economy. Improvements in education level reveals the human capital and economic growth relation in long term.

PDF

___

Aksu L. (2016), Türkiye’de beşeri sermayenin önemi, iltisadi büyüme ile ilişkisi, sosyal ve stratejik analizi, Journal of Economic Policy Researches, 3(2), 68-129

Akyol, T. (2017, September 28). Turkey’s education problems revealed in OECD-wide education test PISA. The Hurriyet. Istanbul. Retrieved from http://www.hurriyetdailynews.com/opinion/taha-akyol/why-is-turkeys-education-system-failing-120058

Ardiente, A., & Guiking, J. M. V. (2015). Education and Its Contributions to the Economy. Journal of Economics and Economic Education Research, 16(1), 198.

Bhatawdekar, M. V. (2017). The Role of Education in Economic Development. Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, 7(4), 285. http://doi.org/10.21648/arthavij/1965/v7/i4/116892

Butler, D., & Erkoyun, E. (2019, March 11). Turkey’s economy tips into recession as lira crisis bites. Reuters. Istanbul. Retrieved from https://www.reuters.com/article/us-turkey-economy-gdp/turkeys-economy-tips-into-recession-as-lira-crisis-bites-idUSKBN1QS0MT

Canarella, G., & Pollard, S. K. (2016). The Augmented SOLOW Model And The OECD Sample. International Business & Economics Research Journal (IBER), 2(7), 89–102. http://doi.org/10.19030/iber.v2i7.3824

Decker, P. T., Rice, J. K., & Moore, M. T. (1997). Education and the Economy: An Indicators Report.

Erdem, E., & Tugcu, C. T. (2010). Higher Education and Economic Growth : an Empiri Cointegration and. Journal of Erciyes University Faculty of Economics and Administrative Sciences, 36(January), 1–14.

ETF. (2012). Education & business turkey.

Giles, D. E. A. (2007). Spurious regressions with time-series data: Further asymptotic results. Communications in Statistics - Theory and Methods, 36(5), 967–979. http://doi.org/10.1080/03610920601041499

Gumus. (2012). The Relationship between Economic Growth and School Enrollment Rates: Time Series Evidence from Turkey, 24–38.

Gungor, N. (2010). EDUCATION, HUMAN CAPITAL INEQUALITY AND ECONOMIC GROWTH: EVIDENCE FROM TURKEY. Regional and Sectoral Economic Studies, 10(2), 53–71.

Gungor, N. D. (1997). Education and Economic Growth in Turkey 1980-1990 : A Panel Study. METU Studies In Development, XXIV(2).

Henderson, D. J., Parmeter, C. F., & Delgado, M. S. (2012). Does Education Matter for Economic Growth ? Does Education Matter for Economic Growth ? JEL Classification: C14, J24, I20, O10, O40, (7089). http://doi.org/10.1111/obes.12025

Jones, C. I. (2003). Human capital, ideas and economic growth. Finance, Research, Education and Growth, 51–74. http://doi.org/10.1057/9781403920232_4

Kar M. Ağır H. (2006), Human Capital and Economic Growth Relation for Turkey, Cointegration Analyses and Causality Tests, Journal of Socail and Economic Research, (1), 51-68

Kizilcelik, S. (2015). An Evaluation of the Turkish Education System outside the Conflict between Old and New. Eurasian Journal of Educational Research, (59), 149–164.

Koç, M. (2015). A Comparative Assessment of Turkey for Its Status and Readiness for Knowledge Society from Human Capital Perspective. Procedia - Social and Behavioral Sciences, 195, 1–9. http://doi.org/10.1016/j.sbspro.2015.06.124

Lowe, J. (1988). Education in Turkey. OECD Observer.

Mercan, M., & Seger, S. (2014). The Effect of Education Expenditure on Economic Growth: The Case of Turkey. Procedia - Social and Behavioral Sciences, 109, 925–930. http://doi.org/https://doi.org/10.1016/j.sbspro.2013.12.565

Mercan, M., & Sezer, S. (2014). The Effect of Education Expenditure on Economic Growth: The Case of Turkey. Procedia - Social and Behavioral Sciences, 109(September 2015), 925–930. http://doi.org/10.1016/j.sbspro.2013.12.565

Miller, R. (2007). Education and Economic Growth: From the 19th to the 21st Century. Cisco Systems.

MOE. (2014). Turkey - Economic Outlook. T.R. Ministry of Economy.

Monteils *, M. (2004). The analysis of the relation between education and economic growth. Compare: A Journal of Comparative and International Education, 34(1), 103–115. http://doi.org/10.1080/0305792032000497

Mupimpila, C., & Narayana, N. (2009). The role of vocational education and technical training in economic growth: a case of Botswana. International Journal of Education Economics and Development, 1(1), 3. http://doi.org/10.1504/ijeed.2009.028935

Najeb, M. (2014). A contribution to the theory of economic growth: Old and New. Journal of Economics and International Finance, 6(3), 47–61. http://doi.org/10.5897/JEIF2013.0518

Odit, M. P., Dookhan, K., & Fauzel, S. (2016). The Impact Of Education On Economic Growth: The Case Of Mauritius. International Business & Economics Research Journal (IBER), 9(8), 141–152. http://doi.org/10.19030/iber.v9i8.620

OECD. (2018). Turkey, (July).

Owings, W. A., Kaplan, L. S., & Pirim, Z. (2012). Education as an Investment in Turkey ’ s Human Capital : A Work in Progress, 5(10), 45–70.

Romer, P. (1989). Endogenous Technological Change, 98(5). http://doi.org/10.3386/w3210

Süleyman, Y., & Harun, T. (2015). Does Education Affect Economic Growth in Turkey? A Causality Analysis. Dokuz Eylul University Faculty of Economic and Administrative Sciences Journal, 30(2), 19–38.

Tunç M, (1998), Kalkınmada insan sermayesi, iç getiri oranı yaklaşımı ve Türkiye uygulaması, Dokuz Eylul University Faculty of Economic and Administrative Sciences Journal, 13(I) pp.83-106

Yurtkuran, S., & Terzi, H. (2015). Does Education Affect Economic Growth in Turkey? A Causality Analysis. Istanbul. Retrieved from http://dergipark.gov.tr/download/article-file/210846