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Public education expenditure and economic growth: the educational quality threshold effect

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  • Salwa TRABELSI

    (ESSEC Tunis - DEFI, University of Tunis-Tunisia)

Abstract

Using the threshold model (Hansen, 1996 and 2000), this paper analyses whether the growth effect of public education spending differs regarding the level of educational quality in each country. The results prove the existence of a threshold effect on the rela-tionship between education expenditure and economic performance. Specifically, spending on education present a positive effect on growth if the quality of education is better otherwise the effect is negative. This result is robust to the use of different measures of education quality of the PISA scores and also of their average as a measure of the performance of the whole labor force.

Suggested Citation

  • Salwa TRABELSI, 2017. "Public education expenditure and economic growth: the educational quality threshold effect," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 45, pages 99-112.
    • Handle: RePEc:tou:journl:v:45:y:2017:p:99-112
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    More about this item

    Keywords

    Education expenditure ; Education quality ; Economic growth ; Threshold effects;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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