The impact of education investment on Sri Lankan economic growth

Ganegodage, K. Renuka and Rambaldi, Alicia N. (2011) The impact of education investment on Sri Lankan economic growth. Economics of Education Review, 30 6: 1491-1502. doi:10.1016/j.econedurev.2011.08.001

Author Ganegodage, K. Renuka
Rambaldi, Alicia N.
Title The impact of education investment on Sri Lankan economic growth
Journal name Economics of Education Review   Check publisher's open access policy
ISSN 0272-7757
Publication date 2011-12-01
Year available 2011
Sub-type Article (original research)
DOI 10.1016/j.econedurev.2011.08.001
Open Access Status Not yet assessed
Volume 30
Issue 6
Start page 1491
End page 1502
Total pages 12
Place of publication Oxford, United Kingdom
Publisher Pergamon
Language eng
Subject 3304 Education
2002 Economics and Econometrics
Abstract We evaluate the contribution of investment on education to Sri Lanka’s economic growth during the period 1959–2008. Physical capital, economic policy changes and the ethnic war are also evaluated due to their substantial importance. This study uses a framework encompassing both the neoclassical and endogenous growth model. The impact of education is assessed through a quality adjusted human capital stock measure. The returns to investment in education are positive but significantly lower than those found for other developing economies. Unlike the case of most developed economies, higher returns from investment in physical capital cannot produce any sizable positive externalities. The war has had the expected negative effect on output, and the results on economic policy changes are inconclusive. The results indicate a need for an appropriate strategy to allocate resources on education to improve its returns to the economy.
Keyword Secondary school education
University education
Physical capital
Human capital
Externality effects
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 16 August 2011.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2012 Collection
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Created: Tue, 06 Sep 2011, 23:23:47 EST by Alys Hohnen on behalf of School of Economics