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Public Expenditure for Education and Economic Growth

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  • Maria Neycheva

Abstract

The study examines the dependence between education and economic growth. Based on the neoclassic model of growth a theoretic dependence between human capital and GDP is drawn. The effect of public expenditure for education on growth in EU countries is studied. The econometric analysis shows that higher rates of economic growth are associated with accelerated growth of state expenditure for education. For the old member-states there is also a positive dependence between research and development expenditure and the trend toward growth of the aggregate product.

Suggested Citation

  • Maria Neycheva, 2008. "Public Expenditure for Education and Economic Growth," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 67-81.
    • Handle: RePEc:bas:econth:y:2008:i:6:p:67-81
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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