Page 15 - Azerbaijan State University of Economics

Rza Mammadov, Erdal Gümüş: Secondary Education, Economic Growth and Finance

According to Table 6, which shows the relationship between education, finance and
growth on the basis of countries, in the model one where education is considered as a
dependent variable, finance affects education negatively at -0.32 level at 10% significance
in FMOLS method. In Belgium, it has a negative effect on FMOLS method and %1
significance at the level of -0,95. For Brazil, this value is -0.19 in FMOLS method and
10% significance level, -0.17 in New Zealand. However, financial education for Moldova
positively affects the FMOLS method and 10% significance at the level of 0.16.
Considering the results of the second model in which finance is a dependent variable,
education in FMOLS method has a negative effect on financing at -0.75 level in Australia
with a 5% significance. In Brazil, it is -0.89 in 10% significance. According to the
findings of both methods, education financing affects negatively between -1.49 and -1.60
in 5% significance level in South Korea. In Sweden, this negative effect is between -1.06
and -1.05 with a significance of 1%. In terms of Moldova, education finance has a positive
effect between 1,38-1,67 in both methods with 5% significance. On the other hand,
education and finance affect each other negatively in Denmark, France, Finland, England,
Sweden, Iceland, Peru and Chile.

According to the findings obtained in Spain, Sweden, Switzerland and New Zealand,
growth has a positive effect to education. In contrast, education in Brazil, Estonia
and New Zealand has a positive impact on economic growth, while in Spain this is
negative. According to another finding, growth and finance in Brazil, Finland, South
Korea, Ireland, Sweden, Iceland, Japan and Hungary mutually affect each other
positively. While growth in Australia, Belgium and Poland has a positive impact on
financing, the impact of finance on growth is not statistically significant. In Spain,
finance has a negative impact on growth.

5. DISCUSSION
The similarities and differences of the results obtained from the research in the literature,
especially endogenous growth theories are discussed in this section. In the human capital
model of Lucas (1988) information gained within the educational levels of individuals has
a positive effect on economic growth by strengthening the interaction between individuals
and adapting to the working conditions quickly during the production process in which
they work as a workforce. As a result of this research, change in the education obtained
changes the growth positively and it coincides with the model of Lucas. At the same time,
there is a positive change in growth with the effective workforce in Lucas' model. If the
process is followed, this change may increase the enrollment rate in the countries. The
result of this research coincides with the economic growth and education relationship with
Lucas. Because, according to the findings, the increase in economic growth affects
education positively as well as education finance positively.

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