Effect of quantity and quality of education on per capita real-GDP growth: evidence from low- and middle-income African countries

Mamit Deme and Ali M. A. Mahmoud

Applied Economics, 2020, vol. 52, issue 57, 6248-6264

Abstract: Although several empirical studies have investigated the growth impact of the quantity of schooling in African countries, research on the impact of schooling quality (the degree to which schooling nurtures professional and cognitive skills) is rare. To fill this research gap, this study examines the effects of the quantity and quality of education on per capita real-GDP growth in low-income and a combination of low- and middle-income African countries using dynamic generalized method of moment estimation on panel data from 2003 to 2016. The results suggest the quantities of primary and secondary education have a positive and statistically significant impact on per capita real-GDP growth; however, the correlation between the quality of education and economic growth is weak and not robust. Furthermore, standardized coefficients indicate the quantity of primary education has a stronger impact on growth than the quantity of secondary education and quality of education, and the quantity of secondary education has a stronger impact on growth than the quality of education. Overall, these results suggest policy authorities should target both the quantity and quality of education to achieve per capita real-GDP growth, with a particular focus on ensuring universal primary education.

Date: 2020
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DOI: 10.1080/00036846.2020.1789058

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