Causality Relationship between Education, Health and Economic Growth in Laos and Thailand
Article Sidebar
Published:
Oct 7, 2020
Keywords:
Causality Relationship Education Health Economic Growth
Main Article Content
Abstract
The intention of this study is to investigate the causal relationship between three different levels of education enrollment (primary, secondary and higher education), health (life expectancy) and RGDP in Laos and Thailand. The causal relationship was tested by using ARDL and VECM Granger Causality for the period 1996 to 2016. The empirical results show the same and the difference in 2 case Laos and Thailand. The unidirectional causality running from health and higher education enrollment to real GDP was found in two cases. The empirical estimation also found the unidirectional running from real GDP and health to secondary school enrollment in these two countries. The difference is that is unidirectional running from real GDP and health to higher education enrollment in case of Laos while we did not find these relationships in the case of Thailand. This might be benefit for policy maker to develop their economy.
Article Details
How to Cite
Vongpanya, S. . (2020). Causality Relationship between Education, Health and Economic Growth in Laos and Thailand. International Journal of Multidisciplinary in Management and Tourism, 2(2), 61–79. https://doi.org/10.14456/10.14456/ijmmt.2021.1
Section
Articles
References
Alfândega, R.d., and Lupi, R.M. (2004). What Level of Education Matters Most for Growth? Evidence from Portugal, JEL, 21, 40-52.
Al-Yousif, Y. K. (2008). Education expenditure and Economic growth: some empirical evidence from the GCC countries, The Journal of Developing Areas, 42, 69-80. Al-Yousif, Y. K. (2008
Afzal, M., Rehman, H. U., Farooq, M.S., and Sarwar, K. (2011). Education and economic growth in Pakistan: A cointegration and causality analysis, International Journal of Educational Research, 50 (2011), 321–335.
Asghar, N., Awan, A., and Rehman, H.u. (2012). Human Capital and Economic Growth in Pakistan: A Cointegration and Causality Analysis, International Journal of Economics and Finance, 4, 135-147.
A. K. Alhowaish (2014). Health care Spending and Economic Growth in Saudi Arabia: A Granger Causality Approach, International Journal of Scientific & Engineering Research, 1, 2229-5518.
Barro, R. J., & Lee, J. W. (1993). International comparisons of educational attainment. Journal of Monetary Economics, 32(3), 363-394.
Bosworth, Barry, Collins, Susan M., & Chen, Yu-Chin. (1995). Accounting for differences in economic growth. Brookings Institution Working Paper.
Bédia, F. Aka. (2008). Health, education and economic growth: testing for long-run relationships and causal linkd, Applied Econometrics and International Development, 8-2.
Brown, R.L., Durbin, J., Ewans, J.M., 1975. Techniques for testing the constance of regression relations overtime. J. R. Stat. Soc. 37, 149–172.
Chuang, Y. (2000), “Human capital, Export, and economic growth: A causality analysis for Taiwan, 1952-1995”, Review of International Economics, Vol. 8 No. 4, pp. 712-720.
Chaudhary, A.R., Iqbal. A., and Mahmood Gillani, S.Y. (2009). The Nexus between Higher Education and Economic Growth: An Empirical Investigation for Pakistan, Pakistan Journal of Commerce and Social Sciences, Vol. 3.
De Meulmester, J. C., & Rochet, D., (1995), A causality analysis of the link between higher education and economic development. Economics of Education Review, vol.144 (4), 351-361.
D. Bloom, D. Canning and J. Sevila. (2001). THE EFFECT OF HEALTH ON ECONOMIC GROWTH: THEORY AND EVIDENCE. NBER Working Paper No. 8587. November 2011.
D. Mayer. (2011). The long term impact of health and economic in Latin American. World Development Vol. 29, No. 6, pp. 1025-1033, 2011.
D. French (2012). Causation between health and income: a need to panic. Empire Economic (2012) 42:583–601.
E. Erdil & H. Yetkiner (2009). The Granger-causality between health care expenditure and output: a panel data approach. Applied Economic ISSN: 0003-6846 (Print) 1466-4283.
Elmi, Z.M., and Sadeghi, S. (2012). Health Care Expenditures and Economic Growth in Developing Countries: Panel Co-Integration and Causality, Middle-East J. Sci. Res., 12 (1): 88-91, 2012
Fidlizan. M., and Hussin. (2012). Education Expenditure and Economic Growth: A Causal Analysis for Malaysia, Journal of Economics and Sustainable Development, 3, 2222-1700.
Gyimah-Brempong. K and Mark Wilson. M (2004). Health human capital and economic growth in Sub – Saharan African and OECD countries.
H. Li and L. Huang (2009). Health, education, and economic growth in China: Empirical findings and implications. China Economic Review 20 (2009) 374–387.
Hassan, M. S., and Kalim, R. (2012). The Triangular Causality Among Education, Health and Economic Growth: A Time Series Analysis of Pakistan, World Appl. Sci. J., 18 (2): 196-207, 2012.
J. Hartwig. (2009). Is health capital formation good for long-term economic growth? -Panel Granger-causality evidence for OECD countries. Journal of Macroeconomics 32 (2010) 314–325.
Katircioglu, Fethi and Caner (2012). Testing the higher education-led growth hypothesis in a small island: an empirical investigation from a new version of the Solow growth model. Qual Quant (2014) 48:729–744.
Lucas, Robert E. (1988). On the mechanic of economic development. Journal of Monetary Economics, 22(1), 3-42.
Mankiw, N. Gregory, Romer, David, & Well, David N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107(2), 407-437.
Mariana, D. R. (2015). Education as a Determinant of the Economic Growth. The Case of Romania, Procedia - Social and Behavioral Sciences, 197 (2015), 404 – 412.
Narayan, P.K. & Smyth, R. (2004), “Temporal Causality and the Dynamics of Exports Human Capital and Real Income in China”, International Journal of Applied Economics, Vol. 1 No. 1, pp. 24-45.
Narayan. P. K., & Smyth, R. (2006), “Higher Education, Real income and real investment in China: Evidence from Granger Causality Tests”, Education Economics, Vol. 14 No. 1, pp. 107-125.
Narayan. S, Narayan. P. K and Mishra. s (2010). Investigating the relationship between health and economic growth: empirical evidence from a panel of 5 Asia countries. Journal of Asian Economics 21 (2010) 404–411.
Omojimite, B.U. (2010). Education and Economic Growth in Nigeria: A Granger Causality Analysis, African Research Review, 4(3a) July, 2010. 90-108.
Ogungbenle, S., Olawumi, O.R., and Obasuyi, F.O.T. (2013). Life expectancy, public health spending and economic growth in Nigeria: a vector Autoregressive (VAR) model, European Scientific Journal, 19, 1857-7431.
Pegkas, P. (2014). The Link between Educational Levels and Economic Growth: A Neoclassical Approach for the Case of Greece, International Journal of Applied Economics, 11(2), September 2014, 38-54.
Qazi, W., Raza, A. S., & Jawaid, T. S. (2014), “Higher education and growth performance of Pakistan: evidence from multivariate framework”, Quality and Quantity, No. 48, pp. 1651-1665.
Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002-1037.
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71-S102.
Rebelo, Sergio. (1991). Long-run policy analysis and long-run growth. The Journal of Political Economy, IC (500-21).
Solow, R. M. 1956. “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, 70(1), 65-94.
Self, S., & Grabowski, R. (2004), “Does education at all levels cause growth? India, a case study”, Economics of Education Review, Vol. 1 No. 23, pp. 47-55.
Tariq, S. I., Md Abdul, W., and Qamarullah, B. T. I. (2007). Relationship between education and GDP growth: a mutivariate causality analysis for Bangladesh, Economics Bulletin, Vol. 3, No. 35 pp. 1-7.
Tsamadias, C., & Prontzas, P., (2011), “The effect of education on economic growth in Greece over the 1960-2000 period”, Education Economics, Vol. 20 No. 5, pp.522-537.
Al-Yousif, Y. K. (2008). Education expenditure and Economic growth: some empirical evidence from the GCC countries, The Journal of Developing Areas, 42, 69-80. Al-Yousif, Y. K. (2008
Afzal, M., Rehman, H. U., Farooq, M.S., and Sarwar, K. (2011). Education and economic growth in Pakistan: A cointegration and causality analysis, International Journal of Educational Research, 50 (2011), 321–335.
Asghar, N., Awan, A., and Rehman, H.u. (2012). Human Capital and Economic Growth in Pakistan: A Cointegration and Causality Analysis, International Journal of Economics and Finance, 4, 135-147.
A. K. Alhowaish (2014). Health care Spending and Economic Growth in Saudi Arabia: A Granger Causality Approach, International Journal of Scientific & Engineering Research, 1, 2229-5518.
Barro, R. J., & Lee, J. W. (1993). International comparisons of educational attainment. Journal of Monetary Economics, 32(3), 363-394.
Bosworth, Barry, Collins, Susan M., & Chen, Yu-Chin. (1995). Accounting for differences in economic growth. Brookings Institution Working Paper.
Bédia, F. Aka. (2008). Health, education and economic growth: testing for long-run relationships and causal linkd, Applied Econometrics and International Development, 8-2.
Brown, R.L., Durbin, J., Ewans, J.M., 1975. Techniques for testing the constance of regression relations overtime. J. R. Stat. Soc. 37, 149–172.
Chuang, Y. (2000), “Human capital, Export, and economic growth: A causality analysis for Taiwan, 1952-1995”, Review of International Economics, Vol. 8 No. 4, pp. 712-720.
Chaudhary, A.R., Iqbal. A., and Mahmood Gillani, S.Y. (2009). The Nexus between Higher Education and Economic Growth: An Empirical Investigation for Pakistan, Pakistan Journal of Commerce and Social Sciences, Vol. 3.
De Meulmester, J. C., & Rochet, D., (1995), A causality analysis of the link between higher education and economic development. Economics of Education Review, vol.144 (4), 351-361.
D. Bloom, D. Canning and J. Sevila. (2001). THE EFFECT OF HEALTH ON ECONOMIC GROWTH: THEORY AND EVIDENCE. NBER Working Paper No. 8587. November 2011.
D. Mayer. (2011). The long term impact of health and economic in Latin American. World Development Vol. 29, No. 6, pp. 1025-1033, 2011.
D. French (2012). Causation between health and income: a need to panic. Empire Economic (2012) 42:583–601.
E. Erdil & H. Yetkiner (2009). The Granger-causality between health care expenditure and output: a panel data approach. Applied Economic ISSN: 0003-6846 (Print) 1466-4283.
Elmi, Z.M., and Sadeghi, S. (2012). Health Care Expenditures and Economic Growth in Developing Countries: Panel Co-Integration and Causality, Middle-East J. Sci. Res., 12 (1): 88-91, 2012
Fidlizan. M., and Hussin. (2012). Education Expenditure and Economic Growth: A Causal Analysis for Malaysia, Journal of Economics and Sustainable Development, 3, 2222-1700.
Gyimah-Brempong. K and Mark Wilson. M (2004). Health human capital and economic growth in Sub – Saharan African and OECD countries.
H. Li and L. Huang (2009). Health, education, and economic growth in China: Empirical findings and implications. China Economic Review 20 (2009) 374–387.
Hassan, M. S., and Kalim, R. (2012). The Triangular Causality Among Education, Health and Economic Growth: A Time Series Analysis of Pakistan, World Appl. Sci. J., 18 (2): 196-207, 2012.
J. Hartwig. (2009). Is health capital formation good for long-term economic growth? -Panel Granger-causality evidence for OECD countries. Journal of Macroeconomics 32 (2010) 314–325.
Katircioglu, Fethi and Caner (2012). Testing the higher education-led growth hypothesis in a small island: an empirical investigation from a new version of the Solow growth model. Qual Quant (2014) 48:729–744.
Lucas, Robert E. (1988). On the mechanic of economic development. Journal of Monetary Economics, 22(1), 3-42.
Mankiw, N. Gregory, Romer, David, & Well, David N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107(2), 407-437.
Mariana, D. R. (2015). Education as a Determinant of the Economic Growth. The Case of Romania, Procedia - Social and Behavioral Sciences, 197 (2015), 404 – 412.
Narayan, P.K. & Smyth, R. (2004), “Temporal Causality and the Dynamics of Exports Human Capital and Real Income in China”, International Journal of Applied Economics, Vol. 1 No. 1, pp. 24-45.
Narayan. P. K., & Smyth, R. (2006), “Higher Education, Real income and real investment in China: Evidence from Granger Causality Tests”, Education Economics, Vol. 14 No. 1, pp. 107-125.
Narayan. S, Narayan. P. K and Mishra. s (2010). Investigating the relationship between health and economic growth: empirical evidence from a panel of 5 Asia countries. Journal of Asian Economics 21 (2010) 404–411.
Omojimite, B.U. (2010). Education and Economic Growth in Nigeria: A Granger Causality Analysis, African Research Review, 4(3a) July, 2010. 90-108.
Ogungbenle, S., Olawumi, O.R., and Obasuyi, F.O.T. (2013). Life expectancy, public health spending and economic growth in Nigeria: a vector Autoregressive (VAR) model, European Scientific Journal, 19, 1857-7431.
Pegkas, P. (2014). The Link between Educational Levels and Economic Growth: A Neoclassical Approach for the Case of Greece, International Journal of Applied Economics, 11(2), September 2014, 38-54.
Qazi, W., Raza, A. S., & Jawaid, T. S. (2014), “Higher education and growth performance of Pakistan: evidence from multivariate framework”, Quality and Quantity, No. 48, pp. 1651-1665.
Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002-1037.
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71-S102.
Rebelo, Sergio. (1991). Long-run policy analysis and long-run growth. The Journal of Political Economy, IC (500-21).
Solow, R. M. 1956. “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, 70(1), 65-94.
Self, S., & Grabowski, R. (2004), “Does education at all levels cause growth? India, a case study”, Economics of Education Review, Vol. 1 No. 23, pp. 47-55.
Tariq, S. I., Md Abdul, W., and Qamarullah, B. T. I. (2007). Relationship between education and GDP growth: a mutivariate causality analysis for Bangladesh, Economics Bulletin, Vol. 3, No. 35 pp. 1-7.
Tsamadias, C., & Prontzas, P., (2011), “The effect of education on economic growth in Greece over the 1960-2000 period”, Education Economics, Vol. 20 No. 5, pp.522-537.