Growth effects of education with the extreme bounds analysis: some evidence from Asia

Abstract

This paper uses the Extreme Bounds Analysis (EBA) to find robust and permanent growth effects of education by using enrolment ratios and its components in a panel of Asian countries. It is found that male and female primary and secondary enrolment ratios have robust but small permanent growth effects. However, the growth effects of male and female tertiary enrolment ratios are fragile and insignificant. In contrast to the existing estimates in the literature, which do not distinguish between the transitory and permanent growth effects, our estimated permanent growth effects are small but significant.Education and growth, Solow Growth Model, Extreme bounds analysis and Total factor productivity.