les cahiers du mecas
Volume 20, Numéro 1, Pages 236-252
2024-06-04

Education, Proximity To Technology Frontier, And Their Impact On Economic Growth In Algeria Between 1991-2021

Authors : Sabah Fatima .

Abstract

The present research paper aims to study the impact of education and proximity to technologiy frontier and their interaction coefficients on economic growth in Algeria during the period from 1991 to 2021, and which educational levels are most important in relation to this proximity. The Vector Error Correction Model (VECM) was used, and the results indicated a causal relationship between all variables and proximity, especially the higher education overlap variable with proximity. However, the impact of this relationship is limited to the short and medium term. Meanwhile, the impact of primary education on proximity is highlighted in the long term. Primary and secondary education positively influence growth in the medium and long term through their interaction coefficient with proximity. The results showed that primary and secondary education are the most important educational levels in driving growth near technological frontier. Additionally, the interaction variables between education and proximity positively affect economic growth, while higher education and the rate of proximity negatively affect economic growth.

Keywords

Education ; Human capital ; Proximity ; Technology frontier ; Economic growth