IMPACTS OF CAPITAL, EDUCATION, AND INCOME INEQUALITY ON ECONOMIC GROWTH: EVIDENCE FROM GERMANY
Problems and Perspectives in Management, cilt.24, sa.3, ss.161-173, 2026 (Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 24 Sayı: 3
- Basım Tarihi: 2026
- Doi Numarası: 10.21511/ppm.24(3).2026.12
- Dergi Adı: Problems and Perspectives in Management
- Derginin Tarandığı İndeksler: Scopus, ABI/INFORM, Directory of Open Access Journals
- Sayfa Sayıları: ss.161-173
- Anahtar Kelimeler: ARDL, capital, economic growth, education, FMOLS, Germany, GINI index, sustainability
- Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
- Hacettepe Üniversitesi Adresli: Evet
Özet
Against the backdrop of economic stagnation, weak external demand, and rising social disparities, this study examines the determinants of economic growth in Germany. Specifically, it investigates the long- and short-run effects of gross capital formation (GCF), government expenditure on education (GEE), and income inequality (GINI) on GDP per capita (GDPPC) over the period 1996–2022. The empirical analysis applies the Autoregressive Distributed Lag (ARDL) bounds testing approach, supported by unit root tests, an error correction model (ECM), and Fully Modified Ordinary Least Squares (FMOLS) estimation. The results confirm the existence of a long-run cointegration relationship among the variables, as the F-statistic of 5.67 surpasses the upper bound critical value at the 1% significance level. The ECM results show that approximately 51.8% of short-run deviations are corrected within one year, indicating a moderate speed of adjustment toward long-run equilibrium. FMOLS estimates suggest that gross capital formation and government expenditure on education are positively associated with GDP per capita in the long run, with coefficients of 0.475 and 0.088, respectively. Income inequality also exhibits a statistically significant but relatively small positive association with economic growth (0.024). In addition, external shocks show asymmetric effects, where financial crises are associated with a 0.055 increase in GDP per capita, while pandemic-related shocks are associated with a 0.089 decrease. Overall, the findings indicate that capital formation and public education expenditure are key long-run correlates of economic growth in Germany, while inequality and external shocks play supplementary but comparatively smaller roles in shaping growth dynamics.