Nexus between Government Expenditure on Education and Economic Growth: Empirical Evidences from India

Abstract:     
Macroeconomists across the world focus on the long-term growth of economies and its dynamic relationship with aspects such as human capital, monetary and other government policies. This paper examines the causation between government expenditure on education and economic growth. Education is a major aspect of human capital and investment in education certainly has a significant impact of social development and subsequently on overall economic growth of any economy in general and emerging economies in particular. Using the time-series data of last above 50 years on government expenditure on education and rate of economic growth in India, the paper makes an attempt to evaluate the impact of one factor on the other. Since the study is under process, final findings are yet to be interpreted. Preliminary findings of this study suggest a bidirectional relation between government expenditure on education and economic growth.

Number of Pages in PDF File: 13

Keywords: Public finance, Macroeconomics, GDP, Human capital, Education

JEL Classification: B22, C50, P35

Accepted Paper Series