Theoretical and Applied Economics
No. 2 / 2016 (607), Summer
Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis
Department of Economics, MANUU ASCW, Srinagar Campus
Maulana Azad National Urdu University, India
Pradeep Kumar DAS
Department of Economics, Pondicherry University, India
Kalandi Charan PRADHAN
Department of Humanities, IIT Bombay, India
Abstract. The study investigates dynamics of expenditure on education and economic growth in selected 14 major Asian countries by using balanced panel data from 1973 to 2012. The results of Pedroni cointegration state the existence of long-run equilibrium relationships between expenditure on education and economic growth in all the countries. The FMOLS results revealed a positive and statistical significant impact of education expenditure on economic development of all the 14 Asian countries (Bangladesh, China, Hong Kong, India, Japan, Nepal, Pakistan, Malaysia, The Philippines, Saudi Arabia, Singapore, Sri Lanka, Thailand, and Turkey). Further, the panel vector error correction (PVECM) presents unidirectional Granger causality running from economic growth to expenditure on education both in the short- as well as in the long-run. But, expenditure on education only Granger causes economic growth in long-run in all the countries. As a group, the FMOLS shows a positive impact of educational expenditure on economic growth. The study argues that education sector is one of the important ingredients of economic growth in all 14 Major Asian countries. Education sector should be given priority, and a handsome share of total expenditure of the governments should be made on education sector by enhancing various elementary, higher and technical educations in the respective nations to have the skilled man power for the long-term economic development.
Contents
The prerequisites of social development when planning for decentralization
Testing the validity of the Feldstein-Horioka Puzzle: New evidence from structural breaks for Turkey
The role of institutional pressures in developing countries. Implications for IFRS
Children’s health insurance coverage in the United States: The role of parents’ ethnicity and immigration status
Axiomatical examination of the neoclassical economic model. Logical assessment of the assumptions of neoclassical economic model
An empirical investigation of banking sector development and economic growth in a panel of selected SAARC countries
A common agency within bureaucracy
From public services to networks of social enterprises. Strategic trends for South-Eastern Europe
The relationship between inclusive growth, inequality and poverty in Africa
Investigation of relation between foreign portfolio investments and stock prices: Time varying asymmetric causality analysis
Asymmetric stochastic volatility in central and eastern European stock markets
Bankruptcy prediction based on the debt ratio
The effects of saving-investment gap on economic growth in developing countries: A clustering and panel data analysis
Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis
Developing a financial inclusion index and inclusive growth in India
A comprehensive view on the manifestations of aggregate demand and aggregate supply shocks in Greece, Ireland, Italy and Portugal
Examining the determinants of FDI inflows in India
A review of corruption based on the social and economic evolution of Ancient Greece and Ancient Rome
Estimating the exchange rate in the context of Romania's integration in the Eurozone