Levels of Education, Technology and Growth

Endogenous growth theory shows that education can contribute effectively to technological change and growth. This book is an empirical investigation in a panel data framework of the transmission mechanisms of investments in education, at different levels, on productivity growth of a sample of OECD countries, exploring its interplay with other determinants of innovation and imitation activities, R&D, international trade and FDI, and emphasizing the Portuguese situation. The evidence that we present at the aggregate country level and at the more disaggregate industry level endorses investing in education as a means of improving the growth performance of OECD countries, however, countries will benefit more by coordinating reforms in education, science and technology, and trade policies than by focusing on each policy individually. Additionally, the effectiveness of education policies might be improved by paying particular attention to specific educational categories instead of subsidizing overall educational attainment.