Constantinos Tsamadias

The effect of education on economic growth in Greece over the 1960–2000 period

This paper examines the impact of education on economic growth in Greece over the period 1960–2000 by applying the model introduced by Mankiw, Romer, and Weil. The findings of the empirical analysis reveal that education had a positive and statistically significant effect on economic growth in Greece over the period 1960–2000. The econometric model explained up to 66% of the variation of the economic growth rate through the variation of the independent variables (physical capital, human capital, and labor). More specifically, when the coefficient of education is estimated using time lags, the contribution of the annual differences of human capital growth to the annual differences of GDP growth has been estimated from an annual 0.64% up to 0.81%.

Does Higher Education Affect Economic Growth? The Case of Greece

Abstract The purpose of the study is twofold: first, it presents an extensive review of empirical studies that have examined the relationship between higher education and economic growth. Second, it estimates the effect of higher education on economic growth in Greece over the period 1960–2009. It applies the model introduced by Mankiw, Romer, and Weil (1992) by using the higher enrolment rates as a proxy of human capital. The paper employs cointegration and an error-correction model to test the causal relationship between higher education, physical capital investments and economic growth. The empirical analysis reveals that there is a long-run cointegrating relationship between higher education, physical capital investments and economic growth. The elasticity of economic growth with respect to higher education is 0.52%. The results also suggest that there is evidence of unidirectional long-run and short-run Granger causality running from higher education and physical capital investments to economic growth.

The effect of education on economic growth in Greece over the 1981-2009 period. Does the proxy of human capital affect the estimation?

This study examines the effect of education on economic growth in Greece, during the period 1981 to 2009, by applying the model introduced by Mankiw et al. (1992). Three different proxies of human capital were used, school enrolment rates in secondary education, average years of schooling and the proportion of the labour force which has received secondary education. The empirical analysis reveals that education has had a negative effect on economic growth. Specifically, the coefficients for the three proxies that were used have resulted in negative sign but only for the enrolments rates case was statistically significant. The model explained 26% up to 34% of the variation of the economic growth rate through the variation of the independent variables in different cases.

The returns of investment in tertiary technological education in greece

Abstract This study estimates the returns of investment in the Greek tertiary technological education from the students and the societys point of view. The study uses earnings data from a stratified sample. The methods used for the estimation of the rates of return were the elaborate and the Mincerian. In the latter method we used both the actual experience from the sample and the potential experience. The estimated rates of return by implementing the two methods are similar. Additionally, the private rate of return by using the actual experience is smaller compared to that arising from the potential experience. The difference is bigger for females than for males. The final conclusion is that the social and private investment in tertiary technological education is an efficient investment.

Does research and development capital affect total factor productivity? Evidence from Greece

The purpose of this study is twofold: Firstly, it investigates the relationship between the research and development (R&D) capital and the total factor productivity (TFP) of the Greek economy over the period 1981–2007. Secondly, it presents an overview of relevant empirical studies. It applies the Johansen methodology to estimate cointegrating vectors and uses vector error correction models to examine causality and short-term dynamics. The results indicate the presence of a long-run relationship between the total R&D capital and TFP and between the public R&D capital and TFP. On the other hand, the private R&D capital is not significantly related to TFP. A 1% increase in total R&D capital raises TFP by 0.038%, whereas a 1% increase in the public R&D capital raises TFP by 0.075%. The productivity of the Greek economy could be enhanced by higher R&D expenditure combined with the necessary structural reforms to improve the efficiency of the innovation system.

The rate of return of social investment on post-secondary initial vocational education and training in Greece

According to the human capital theory education and training produce, accumulate and diffuse human capital. They are a type of consumption but they are mainly considered as investments. In Greece, the Post Secondary Initial Vocational Education and Training is a sub-system of the Life Long Learning. The present study provides ex post estimates of the rates of return on the social investment to Post-Secondary Initial Vocational Education and Training by using a cost-benefit approach. Stratified sampling has been employed with a proportional distribution throughout the country in order to derive a sample on the private sectors earnings data. Data on social costs have also been used in this study. The empirical results showed that, in general, the rate of return on the social investment to Post-Secondary Initial Vocational Education and Training has been satisfactory. Moreover, sensitivity analysis showed that the rate of return increases slightly, when the duration of studies and the social cost of Post-Secondary Initial Vocational Education and Training system are decreased.

DOES FORMAL EDUCATION AT ALL LEVELS CAUSE ECONOMIC GROWTH? EVIDENCE FROM GREECE

Abstract This study empirically investigates the link between the levels of formal education and economic growth in Greece during the period 1960-2009. The paper applies the Lucas approach (1988) and employs cointegration, error-correction models and estimates the effect of each educational level on economic growth. The empirical analysis reveals that there is a long-run relation between educational levels and gross domestic product. The overall results show that secondary and higher education has had a statistically significant positive impact on growth, while primary has not contributed to economic growth. The findings also suggest that there is evidence of unidirectional long-run causality running from primary education to growth, bidirectional long-run causality between secondary and growth, long-run and short-run causality running from higher education to economic growth.

Looking at the Knowledge Economy: Some Issues on Theory and Evidence

Innovation activities contribute essentially to the regional dimension and growth. The technological infrastructure and innovation capabilities affect not only the regional growth, but also the whole periphery and economy as well. In the last decades, OECD /introduced some measures and indexes, concerning the Research and Development Expenditures, patents etc., that measuring the innovation activities. However, there are a lot of problems and questions regarding the measurement of innovation activities at a regional level. This paper attempts to analyze the whole framework of innovation statistics and in particular to examine the measurement and also the statistical estimation of innovation activities. On this context, it’s also aiming to emphasize and to review the appropriate techniques, the most common methods and the particular problems.

The social rates of return on investment in tertiary technological education by faculty as a guide for educational planning : the case of Greece

Abstract Education, according to human capital theory, means consuming but mainly investing. In Greece, Tertiary Technological Education is a sub-system of Higher Education. This study estimates the rate of return to social investment in Tertiary Technological Education by field of study. The study uses the cost-benefit analysis method, more specifically the elaborate and the short-cut methods. The earnings data are from a cross-sectional survey of hired labor of tertiary technological education and secondary education graduates. Data was collected using stratified sampling throughout the entire country. The study also uses data of social cost. The main finding is that, in general, social investment in Tertiary Technological Education is profitable. In particular, social investment is more profitable in the faculties of technological applications and food-nutrition while it is less profitable in the faculties of health and caring professions, graphic arts-design and administration – economy. On the other hand, investment in the agricultural technology has low return. These findings may constitute a useful guide for educational planning.

Does R&D, human capital and FDI matter for TFP in OECD countries?

ABSTRACT This study investigates the interplay between research and development (R&D), human capital (HC), foreign direct investment (FDI) and total factor productivity (TFP) in OECD countries. We divide the sample into two sub-groups; the European and the non-European states so as to account for underlying country heterogeneity. The analysis follows a panel data approach over the period 1995–2015, taking into account the modelling on non-stationarity, long-run relationships and short-run dynamics with a panel VAR. Both R&D and HC have a positive effect on TFP, whilst FDI has a positive and significant effect only in the case of non-European countries. Moreover, the contribution of R&D is higher than that of HC and FDI in all cases. Thus, based on these findings, policymakers should design and implement policies to increase resources invested in R&D, with a consistent ongoing spending review, to attract foreign direct investment, especially for the majority of the European and some of the non-European countries and to improve education system on a more productive innovation and research base.