An Examination of Educational Institutions, Economic Development, and Developing Country Growth

Abstract

The purpose of this project is to undertake an experimental and theoretical investigation into the interrelationships that exist between institutions, educational advancement, and economic expansion by utilizing panel data collected from 1996 to 2017. For the purpose of estimating the outcomes in developing countries, the panel data were put through a two-stage least squares (2SLS) regression analysis. In place of institutions, the rule of law, political stability, the lack of violence, and the control of corruption were put into place. According to the findings of an investigation, the expansion of the economy had a constructive and considerable impact on the areas of education, political stability, the management of corruption, and the lack of violent crime. It is possible to notice positive and significant benefits on education that are brought about by political stability, the rule of law, the absence of violence, and the fight against corruption among other factors. Conversely, education exerts a large and harmful influence on economic growth and the rule of law, whereas it does so in a positive and consequential way on political stability and the lack of violence. Therefore, the findings indicate that educational institutions make a beneficial contribution to economic growth, and that the majority of the discrepancies in educational achievement that exist between countries may be attributed to the fact that there are variances in the quality of the institutions.

Keywords: Educational Institutions, Economic Development, Developing Country Growth