Table II.

Estimated models

Secondary educationTertiary education
(0)Linear model (1)STR model(2)Linear model (3)STR model (4)
Dependent variable: economic growth (GDPt)Transition variable: ENRSt-1Transition variable: ENRTt-2
“Lower” regime (F = 0)    
GDPt-10.25 (0.10)−1.31 (0.26)0.28 (0.08)0.66 (0.15)
GDPt-20.19 (0.09)1.43 (0.25) 0.32 (0.14)
ENRS/Tt0.15 (0.06) 0.09 (0.03)0.18 (0.06)
ENRS/Tt-1   −0.50 (0.12)
ENRS/Tt-2    
PHYt0.25 (0.03) 0.23 (0.03)0.23 (0.03)
PHYt-1 0.56 (0.07)  
PHYt-2 −0.48 (0.13) −0.18 (0.07)
LABS/Tt −0.85 (0.32) 0.07 (0.03)
LABS/Tt-1 1.07 (0.36)0.12 (0.04)0.17 (0.05)
LABS/Tt-2 0.16 (0.09)  
EXPt    
EXPt-10.07 (0.03)  0.21 (0.08)
EXPt-2    
Interactions with F(st)    
F(st)×GDPt-1 3.97 (1.38) −1.35 (0.28)
F(st)×GDPt-2 −2.66 (0.80)  
F(st)×ENRS/Tt   −0.34 (0.12)
F(st)×ENRS/Tt-1   0.67 (0.14)
F(st)×ENRS/Tt-2    
F(st)×PHYt 0.56 (0.14)  
F(st)×PHYt-1 −1.51 (0.48) 0.18 (0.07)
F(st)×PHYt-2 0.83 (0.27) 0.22 (0.07)
F(st)×LABS/Tt 1.26 (0.53) 0.07 (0.03)
F(st)×LABS/Tt-1 −1.76 (0.62)  
F(st)×LABS/Tt-2    
F(st)×EXPt   0.08 (0.04)
F(st)×EXPt-1   −0.15 (0.08)
F(st)×EXPt-2 −0.08 (0.04)  
γ 2.17 (1.00) 66.65 (375.65)
c 0.015 (0.01) 0.052 (0.00)
R¯2
0.780.920.780.87
s2/s2L 0.25 0.33
AUTO 2.89 (0.08) 3.52 (0.06)
NL 2.60 (0.23) 2.50 (0.32)
PC 1.40 (0.38) 1.09 (0.55)

Notes: Country-level analysis. GDP: Gross Domestic Product; ENRS: enrolment ratio secondary education; ENRT: enrolment ratio tertiary education; PHY: physical capital; LABS: labour force with secondary education; LABT: labour force with tertiary education; EXP: government expenditure on education. All variables are first differences of the logarithmic transformation. Values after regression coefficients are SEs of the estimates; R¯2 is the adjusted coefficient of determination; s2/s2L is the variance ratio of the residuals from the STR model and the linear regression; AUTO is the test for residual autocorrelation of order 2; NL is the test for no remaining nonlinearity; PC is the general parameter constancy test. Numbers in parentheses after misspecification tests statistics are p-values

Source: Own elaboration

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