Education and Economic Growth: ıs There a Role for Governance? a Comparison between MENA and OECD Countries

In: Eurasian Journal of Social Sciences: EJSS, Band 10, Heft 4, S. 236-251

Abstract

The outcomes of education and growth are mixed. This paper revisits the debate on the impact of education on economic growth by focusing on the effect of governance. Our sample covers 13 countries in the Middle East & North Africa and 37 OECD countries during the period 1990- 2020. For a dynamic panel type model, we preferred the GMM estimation approach in order to appropriately verify the relevance of the supporting indicators. Our objective is to determine whether the effects of education and governance on growth depend on the level of development of the country. Our results show that good governance contributes to economic growth in OECD countries. Strong governance raises the level and quality of education of the population and stimulates growth. The governance system is still being built for the nations of the MENA region, and it has several flaws. These results have important policy implications. Governments in the MENA region must invest more domestic resources in education and raise the standard of their institutions by implementing good governance practices if they want to improve output. Economic performance is possible when the governing principles are applied strictly, severely, and effectively. The advancement of education and the achievement of economic prosperity require efficient governance.