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Government Spending on Tertiary Education, Knowledge, Technology, and Economic Growth

Author

Listed:
  • Tang , Tuck Cheong

    (Universiti Malaya, Malaysia)

  • Lai, Siow Li

    (Universiti Malaya, Malaysia)

Abstract

This study examines the role of government spending on tertiary education in promoting economic growth through knowledge creation and technology for panel data from 71 countries (1998-2014). This transmission channel is supported by Granger non-causality tests on high-income groups only. Both all panels (all countries) and upper-middle-income groups demonstrated direct causation from the government’s support of tertiary education to economic growth and vice versa. Additionally, the lower-middle-income group acknowledged the importance of government spending on tertiary education to stimulate output via interaction between knowledge and technology. These findings remain feasible with the inclusion of the governance variable. This study adds new findings and offers relevant policy insights, especially in the era of a knowledge-based economy.

Suggested Citation

  • Tang , Tuck Cheong & Lai, Siow Li, 2022. "Government Spending on Tertiary Education, Knowledge, Technology, and Economic Growth," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(4), pages 99-122, December.
    • Handle: RePEc:ris:jecdev:0005
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic Growth; Government Spending; Knowledge; Technology; Tertiary Education;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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