Investigating the causal relationship between education and economic growth in Zimbabwe

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Dr. Tichaona Zivengwa
Dr. Tichaona Zivengwa
1 University of Zimbabwe

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This paper specifically investigates the causality between education and economic growth in Zimbabwe during the period 1980 to 2008. The empirical investigation has been carried out by Pairwise Granger Causality and Vector Autoregression(VAR) modelling using modern econometrics techniques of unit root test since macroeconomic time series data was used which is frequently non stationary. The findings confirmed that there is uni-directional causality between education and economic growth in the Zimbabwean economy running from education to economic growth as established by granger causality tests, variance decomposition and impulse response functions. This shows that investing in education is important for economic growth. The results also confirm a transmission mechanism that runs from education to economic growth via physical capital investment. This shows that a rise in human capital boosts the return on physical investment. The study recommends that the government and the private sector should concentrate on policies that will improve the education system.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Dr. Tichaona Zivengwa. 1970. \u201cInvestigating the causal relationship between education and economic growth in Zimbabwe\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 12 (GJMBR Volume 12 Issue B8): .

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GJMBR Volume 12 Issue B8
Pg. 107- 117
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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This paper specifically investigates the causality between education and economic growth in Zimbabwe during the period 1980 to 2008. The empirical investigation has been carried out by Pairwise Granger Causality and Vector Autoregression(VAR) modelling using modern econometrics techniques of unit root test since macroeconomic time series data was used which is frequently non stationary. The findings confirmed that there is uni-directional causality between education and economic growth in the Zimbabwean economy running from education to economic growth as established by granger causality tests, variance decomposition and impulse response functions. This shows that investing in education is important for economic growth. The results also confirm a transmission mechanism that runs from education to economic growth via physical capital investment. This shows that a rise in human capital boosts the return on physical investment. The study recommends that the government and the private sector should concentrate on policies that will improve the education system.

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Investigating the causal relationship between education and economic growth in Zimbabwe

Dr. Tichaona Zivengwa
Dr. Tichaona Zivengwa University of Zimbabwe

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