This article examines the impact of education on GDP growth (non-oil
sector), a key indicator of Azerbaijan's economic development. The study
used non-oil GDP per capita as a dependent variable, capital stock, total
government expenditure, oil fund revenues, number of graduates of
specialized secondary educational institutions, number of graduates of
higher educational institutions, and human development index as
independent variables. Quarterly data covering 2003-2019 were used to
construct the model. 9 models were built using Vector Error Correction
Models. According to the models' results, education has significant
positive effects on economic growth in models 1, 4, 7 in the short term,
significant adverse impact
in models 6 and 9 in the long run. The best result among these models was
obtained in model 1 (independent variables are capital stock, oil fund
revenues, and the number of graduates of specialized secondary
educational institutions). Because almost all indicators in the first model
for both short-term and long-term are significant.
Citation:
Ismayilov, A., Kasumov. A., & Ahmadova, E. (2020). The impact of higher and secondary education on economic growth in Azerbaijan. ASERC Journal of Socio-Economic Studies, 3(2), 60-88. DOI:10.30546/2663-7251.2020.3.2.60