The Effect of Education Expenditure on Economic Growth: The Case of Turkey (original) (raw)
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ScienceDirect The effect of education expenditure on economic growth: The case of Turkey
The relationship between education expenses and economic growth is among the practical studies attracting high interest in Economics literature. In this study, a positive relationship between education expenses and economic growth was found in the Turkish economy for the period 1970-2012. Thus it appeared that education expenses in Turkey had a positive effect on economic growth positively. A greater allocation of resources on education expenses could make the Turkish economy more dynamic.
The Impact Of Education On Economic Growth In Turkey
DergiPark (Istanbul University), 2010
This paper aims to investigate the relationship between per capita school enrolments and per capita economic growth in Turkey over the period 1923-2007. Using the Autoregressive Distributed Lag (ARDL) approach to cointegration, we find evidence of long-run cointegrating relationships between school enrolments and real income. There is evidence of bidirectional long-run Granger causality between real income and school enrolments. There is a uni-directional short-run Granger causality running from enrolments in secondary, high, and technical high schools to real income. The results also suggest that high school enrolments Granger-cause higher education enrolments in the short run. The variance decomposition and impulse response analyses confirm the results of Granger causality tests. Overall, the results indicate that education is a means of long-run economic growth in Turkey and vice versa.
The relationship between education expenditures and economic growth is among the practical studies attracting high interest in Economics literature. The analysis was carried out with the bounds testing approach developed by and besides the constant model, constant and trend model was also used unlike the literature. In this study, a positive relationship between education expenditures and economic growth was found in the Turkish economy for the quarterly period 1980:Q1-2012:Q4. Thus it appeared that education expenditures in Turkey had a positive effect on economic growth positively. A greater allocation of resources on education expenditures could make the Turkish economy more dynamic. Furthermore, in short term analysis coefficient of error correction terms were negative and statistically significant. So the deviations occurring between the variables converge to the long term balance level. In Granger causality analysis, a two-way relationship was determined between the education expenditures and economic growth.
Does Education Affect Economic Growth in Turkey? A Causality Analysis
This study attempts to examine empirically the relations between economic growth and education for Turkey in the period from 1950 through 2012 by using Standard Granger causality, Hsiao version of Granger causality and Dolado-Lütkepohl VAR causality analyses. Econometric findings imply that there is one-way (positive) causality from the economic growth to the number of students completing university and one-way (positive) causality from the number of students completing vocational high school and the number of students completing high school to the economic growth.
Do Public Education Expenditures Really Lead to Economic Growth? Evidence from Turkey
The effect of government expenditures on economic growth is one of the key issues in economic literature. The issue has been extensively held regarding total government expenditures. This kind of intellect has a possibility to ignore the well-known positive impact of human capital on economic growth posited by endogenous growth theories. Through the analysis of public expenditures by government in detail, direct and indirect effects of human capital investments can also be apprehended. This article maps out a framework for thinking about the issue in the context of the causal relationship between public educational expenditures and economic growth in Turkey over the period 1973-2009. The empirical results based on Toda and Yamamoto (1995) causality analysis show that the relationship between government expenditures and growth is not in the form of bidirectional causation as causality runs only from economic growth to educational spending but not expenditures on education to economic growth.
The influence of education on economic growth
In transition countries affected by uncertainty, the educational system usually suffers from lack of funds from the government and it is affected by various reforms. It is important to see how education influences economic growth and how this growth can be improved by investing in education. In this article, after a literature and econometric models review, the influence of primary, secondary and tertiary education over the GDP growth will be analyzed for Bulgaria, Czech Republic and the Netherlands, using regressions models, with the aid of computer software tool EViews. The models will be tested in order to obtain a good and reliable model.
How National Education in Turkey Affected the Economic Growth and Development of the Country
IJOPEC Publication, 2021
There are a number of previous works showing the fact that education can affect the economic growth and development of countries by various means. In the relationship between national education and economic growth and development, human capital theory occupies a very central role. The role of education in the economic growth of countries can be demonstrated with and could analytically be derived from supply-side production functions related to the Gross Domestic Product (GDP) of countries. The enhancement of human capital and technology not only facilitates the growth of countries but also their economic development. This article demonstrates how human capital plays a critical role in the economic growth of countries and how it is derived from the supply-side Cobb-Douglas production function. It also investigates the situation in the case of Turkey and explores how increases in educational attainment play a very important role in the country’s economic growth and development.
Empirical Analysis of the Impact of Education on Economic Growth
Economies
Education is a crucial factor for sustainable economic growth. Therefore, public expenditures on education are of great interest to both researchers and policy makers. The channels through which education affects economic growth differ according to the level of development of the country. This study aims to measure the impact of public expenditure on education for economic growth in North Macedonia. The data used are secondary data derived from the World Bank Indicators for the period 1917–2020. The econometric model employed in this study is an Instrumental Variable Two-Stage Least Square. The dependent variable in the model is Gross Domestic Product and the independent variables in the model are public expenditures on education, labor force participation rate, gross capital formation, unemployment, industry, wages, employment, information, and communication technology, and the instrumented variable is tertiary enrolment. This study suggests that a one-point increase in public expe...
DISAGGREGATED EDUCATION DATA AND GROWTH: SOME FACTS FROM TURKEY AND MENA COUNTRIES
This paper investigates the interaction between the economic growth and the education in MENA countries and Turkey. Following a brief outline of the theoretical discussions on the nexus between economic growth and human capital formation through education, first we present some observations for the MENA region. Rest of the paper devoted to the estimation result of the VAR model which is developed in order to study the interaction between education and economic growth in Turkey. The paper concludes that the efforts to improve the quality of education have significant contribution to the economic growth of the countries in the MENA region. We also found that all levels of education except high-technical schools and university level contribute the economic development in Turkey when the indicators of education quality are used.
Education and Its Impact in Economic Growth in Lower Middle Income Countries
The objective of this paper is to link and assess the relationship between investment in education and economic growth in the of low middle income countries in Europe including Russia and Turkey for e period between 2000 -2017 , and the effect of some of the main variables associated with this investment, such as government expenditure on education as percentage of total government expenditure; government expenditure per student on tertiary education as percentage of GDP and school enrollment on tertiary education. As a technique is employed a Hausman Taylor model with instrumental variables (IV) , to show the regression results of relationship between investment in education and GDP growth in surveyed countries. Also, for comparison reasons the paper shows the results from pooled OLS, fixed effects and random effects. Results from this empirical research shows a positive impact on government's investment in tertiary education, while school enrollment in tertiary education has a negativ effects in GDP growth in low middle income countries in Europe.