The Long-Run Relationship between Education and Economic Growth in WB Countries: A Panel ARDL Test

Abstract

This thesis is focused on the impact of education on the economic growth in Western Balkan countries (Albania, Macedonia, Montenegro and Serbia). These countries have same characteristics in economic conditions, same rhythm of domestic development and for all this countries education is an important factor of economic growth. Testing Fisher Chi –Square tests and ARDL test study the impact of education in economic growth. Variables used in this research are Gross Domestic Product (GDP), inflation, Gross Fixed Capital Formation, labor force, primary school enrollment, secondary school enrollment, and tertiary school enrollment. Data used are yearly and corresponds to the period from 1998 to 2014.Data are taken from the World Bank and International Financial Statistics of International Monetary Fund. The results secondary education has largest impact in the economic growth in the Western Balkan countries.