Effect of education on economic growth in South Korea and Egypt Data analysis (1970-2018)

Abstract

Improving education, as well as economic growth, is central in development strategies. However, education and growth, have been debatable, as improving education does not guarantee economic growth. This paper discusses the effect of improving schooling on economic growth in Egypt and Korea. Both countries had similar GDP/Capita in the sixty’s approx. and history but the role of each one had different effect on economic growth. This research paper used time series data analysis. Results show a positive impact of education on economic growth in South Korea, while in Egypt, this relation is absent. Results in South Korea showed strong evidence that the cognitive ability of the population’s cognitive ability is closely linked to individual wealth, income distribution and economic development rather than mere school achievement. Also, results show the effect of each of government expenditure on education, secondary school enrollment, adjusted savings, and the unemployment on the economic growth in Egypt and South Korea.