Shahram Mosalla; Alireza Amini; Gholamreza Geraeinejad; Ali Akbar Khosravinejad
Abstract
The study of the effect of education on total factor productivity is one of the important topics in the macroeconomic literature and educational policy. However, identifying the threshold of the effect of education on total factor productivity is of more interest to policymakers. The present study ...
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The study of the effect of education on total factor productivity is one of the important topics in the macroeconomic literature and educational policy. However, identifying the threshold of the effect of education on total factor productivity is of more interest to policymakers. The present study investigates the nonlinear relationship between education and total factor productivity for the period 1365-1397 SH (1986-2018). Average years of study have been used as an indicator of education and the Gentle Transfer Regression (STR) model has been applied to estimate the threshold. The results confirm the nonlinear effect of education levels on total factor productivity and show that the quantity of education index in a two-regime structure with a threshold of 81.86 (equivalent to the average years of study 7.82 years) has a significant effect on total factor productivity. Given that the Iranian economy has exceeded the threshold since 1390 SH (2011), increasing the quantity of education will have a negative impact on productivity. Therefore, reviewing the quantitative development of education and giving priority to improving the quality of education has more priority than in past.
Ali Asghar Salem
Abstract
The spread of information and communication technology and its effects on information and data transfer, in association with high quality education, a favorable economic regime, and innovation in economy, has played an indispensable role in sustainable growth and development. This study is conducted ...
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The spread of information and communication technology and its effects on information and data transfer, in association with high quality education, a favorable economic regime, and innovation in economy, has played an indispensable role in sustainable growth and development. This study is conducted to identify the role and effect of knowledge-based economy on economic growth within the context of existing economic literature. In this line, relying on principles of economic growth models, a model is estimated in the framework of a panel data model, considering the knowledge-based economy index of 139 selected countries during period 2010 to 2014. This research focuses not only on basic production inputs, i.e. capital and labor, but also on social capital and knowledge-based economy as two of the most important factors of production, and it show the role of social capital in economic growth. Our results show a positive and significant effect of the knowledge-based economy index on economic growth among the set of selected countries.
