The Impact of Education on Economic Growth: The Case of India

Abstract

There exists an enormous interest in clarification of the relationship between education and economic growth. Over the past 30 years, there have been conducted studies by economists about the connection between education and economic growth. There are actually many publications which provide strong evidence that suggests a correlation between the two. This paper attempts to build upon previous publications and to introduce a unique insight along with contemporary evidence about the relationship between education and economic growth in India from 1975 to 2016 by foc using on primary, secondary and tertiary levels of education. The relationships are examined by utilization of econometric estimations with the Granger Causality Method and the Cointegration Method. These methods are used to create models that could shed light on the claim that education plays a central and significant role in economic growth of India which could consequently be used as an example for similar countries in Asia or around the world. The findings of this work show that there is compelling evidence proving a positive connection between education levels and economic growth in India which might influence governmental actions and shape the future of India.

Keywords

• education
• gross enrolment rate
• economic growth
• impact
• India
• Asia