Effects of Education Levels on Economic Develoment in Turkey: a Panel Analysis

In this study, it is aimed to examine the impact of different levels of education on real GDP (and real GDP per workforce) in Turkey, and hence the relationship between different levels of education and the standard of living is estimated by panel data techniques. The panel data set in the study is constructed by pooling 67 provinces of Turkey over the period of 1975-2000. Furthermore, in the empirical work, two models are employed: the model introduced by Knowles (1997) and the augmented Solow model with different levels of education. The panel data estimation of the Knowles?s model implies that the secondary level of schooling has the greatest contribution to real GDP, while the augmented Solow model implies that the higher level of schooling has the largest impact on real GDP per workforce.