The Nexus between Education and Economic Growth: Analyzing Empirically a Case of Middle-Income Countries

  • Lamia Jamel Department of Finance and Economics, College of Business Administration, Taibah University, Saudi Arabia
  • Monia Ben Ltaifa Human Resource Department, Community College in Abqaiq, King Faisal University, Saudi Arabia
  • Ahmed K Elnagar Department of Administrative and Financial Sciences and Techniques, Community College, Taibah University, Saudi Arabia; Suez Canal University, Egypt
  • Abdelkader Derbali Department of Administrative and Financial Sciences and Techniques, Community College, Taibah University, Saudi Arabia; Department of Management Sciences, Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia
  • Ali Lamouchi College of Business Administration in Al Rass, Qassim University, Saudi Arabia
Keywords: Quality of Education, Quantity of Education, Economic Growth, Static and Dynamic Panel


The purpose of this paper is to examine empirically the nexus between education accumulation and economic growth for a sample of middle-income countries through panel data regressions. The sample consists of 28 middle-income countries from various continents: North Africa and the Middle East (6 countries), sub-Saharan Africa (7 countries), Latin America and the Caribbean (8 countries), East Asia and the Pacific (3 countries), and Europe and Central Asia (4 countries). Education is measured by quantitative (average years of labour force study) and qualitative indicators (student scores on international assessments of educational achievements). To test the impact of education accumulation on GDP per capita growth, a static panel is used during the period of study from 1970 to 2014. A dynamic panel is also being developed to estimate the effect of the education stock on the growth rate of GDP per capita. The results confirm the positive and significant impact of the education quantity and quality on economic growth, both in level and variation. The stock of education and its increase are positively affecting the growth. Moreover, this paper’s original findings suggest that the quality of education is more significant than its quantity.


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Jamel, L., Ltaifa, M., Elnagar, A., Derbali, A., & Lamouchi, A. (2020). The Nexus between Education and Economic Growth: Analyzing Empirically a Case of Middle-Income Countries. Virtual Economics, 3(2), 43-60.