Long-Run Relationship between Education and Economic Growth: Evidence from Nigeria

The paper empirically evaluates the impact of education on economic growth in Nigeria. To achieve this, time series were used and the unit root properties of the variables were verified using the Augmented Dickey-Fuller and Phillips-Perron techniques. The results suggest that the variables (economic growth and education) are integrated of order one while the Error Correction terms are integrated of order zero, which is a condition for the existence of cointegration on the basis of Engle-Granger Approach. The Johansen cointegration test further confirms the existence of long-run relationship between the two variables of interest. The causality test results indicate uni-directional causality which runs from economic growth to education. The error-correction mechanism gives evidence for the short-run dynamics. Hence the need for quality assurance in education to make it growth enhancing.