Investigating the relationship between Education & Economic Growth in Zimbabwe (1980 - 2003)

Abstract

The period from 1980 to 2003 may have seen the brighter side of the Zimbabwean economy, with the nation reaching the worst levels in terms of economic performance between 2003 and 2008. In light of the crucial role that education seems to play in economic growth, this study explores the relationship between education and economic growth in Zimbabwe for the period 1980 to 2003. The choice of the period was determined by the attempt to exclude years in which the country was in economic doldrums and for which outliers in data are prevalent. Using a dynamic ordinary least squares (DOLS) method, the study observes that education, as measured by government expenditure on education, is a fundamental covariate of economic growth in Zimbabwe. The paper essentially argues that, economic growth, being the ultimate macroeconomic goal for any economy, is crucial and worthy striving for. Its explanatory variables, and specifically, education, should thus deserve priority in fiscal allocation. To achieve economic growth, economies should invest more in education.