Empirical evidence of the impact of literacy on economic growth
DOI:
https://doi.org/10.18222/eae.v31i78.7452Keywords:
Education , Economic Growth , Literacy RateAbstract
This research used a spatial version of the model developed by Mankiw, Romer and Weil [MRW (1992)] to assess the literacy impact on the per capita income of Brazilian municipalities between 1980 and 2010. The results show that the effect of literacy is greater in regions that are more homogeneous and it spillover to the neighborhood. On average, a 1% increase in literacy rate would increase income by 1.684%. Therefore, the Brazilian gross domestic product (GDP) could be 15.91% higher if it reached the level of European literacy. On the other hand, Alagoas, Piauí, Paraíba and Maranhão (and 10 other states) could increase their respective incomes by 32.77%, 29.09%, 26.53% and 23.97%, respectively, if they reached the national literacy average.
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