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

Romanian Journal for Multidimensional Education, Vol. 3, No. 6, pp. 73-85, April 2011

13 Pages Posted: 16 Sep 2010 Last revised: 2 May 2011

See all articles by Abhijeet Chandra

Abhijeet Chandra

Vinod Gupta School of Management, IIT Kharagpur

Date Written: September 15, 2010

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.

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

JEL Classification: B22, C50, P35

Suggested Citation

Chandra, Abhijeet, Nexus between Government Expenditure on Education and Economic Growth: Empirical Evidences from India (September 15, 2010). Romanian Journal for Multidimensional Education, Vol. 3, No. 6, pp. 73-85, April 2011. Available at SSRN: https://ssrn.com/abstract=1677294

Abhijeet Chandra (Contact Author)

Vinod Gupta School of Management, IIT Kharagpur ( email )

Kharagpur, 721302
India

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