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

Ahmad and Luqman (2012), the increase in secondary education has an important
share in the development of Pakistan economy.

Kesikoğlu and Öztürk (2013), examined the relationship between education, health
and economic growth of 20 OECD countries, used the data for the years 1999-2008
in their research. In the study using the panel causality model, variables of GDP
growth and total education expenditures in GDP were preferred. According to the
research findings, "economic growth" and "education" have a mutual causality
relationship. On the other hand, Karaçör, et al. (2017), researched the relationship
between 19 OECD countries' educational spending and economic growth. In the
research used in the panel model, it was concluded that education expenditure
positively affected economic growth. Lenkei, et al. (2018) researched the growth
relationship of 14 Asian countries with secondary education. They concluded that
secondary education positively affected growth.

3. RESEARCH METHODOLOGY
In this study, which aims to investigate the relationship between education and
economic growth on the basis of secondary education, the panel model was
preferred because it has both cross-section and time data. The mathematical
expression of the method used in the research is as follows:

= + 1 + 2 +

1

2

The dependent variable in the method is “y”. “ ” has a constant effect on the dependent
variable. “x1” and “x2” are independent variables. “ ” is the error term in the method.
“i” is the section unit and “t” is time data (Baltagi, 2001: 306). In this study, the cross-
section unit is PISA 2015 participant 30 countries and it is shown in Table 1.

Table 1: Selected Country Group
No Country No Country No Country
1 Australia* 11 Finland* 21 Norway*
2 Austria* 12 France* 22 Peru
3 Belgium* 13 Hungary 23 Poland*
4 Brazil 14 Iceland 24 Portugal*
5 Bulgaria 15 Ireland* 25 South Korea*
6 Chile 16 Italy 26 Spain
7 Colombia 17 Japan* 27 Sweden*
8 Denmark 18 Mexican 28 Switzerland*
9 England* 19 Moldova 29 Turkey
10 Estonia* 20 New Zealand* 30 USA

The countries indicated by "*" in Table 1 show the countries that achieved success
above the OECD average [OECD. (2018). PISA 2015: Results in focus. OECD
Publishing]. Time data in the research are the data between the year 1998-2015.
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