The Impact of Public Education Expenditure on Economic Growth in Kosova: A Quantitative Analysis

This paper analyses the impact and correlation of different education indicators on the economic growth of Kosova from 2012 to 2022. Using time-series data, this paper applies the Cobb-Douglas production function as a measurement model. The main findings demonstrate a mixed impact on growth, where public expenditure on education as a percentage of government expenditure contributed a solid positive impact and statistically significant effect, while the gender parity index exhibited a less significant positive impact on growth. In contrast, only public expenditure on education as a percentage of GDP showed a negative impact, while other examined variables have not displayed a significant positive impact on the economic growth of Kosova. These findings suggest that the effective allocation of education expenditures and the alignment of these expenditures with broader economic objectives are crucial for maximizing growth potential and fostering economic development in Kosova. In terms of policy implications, institutions in Kosova and other relevant policymakers should prioritize enhancing the quality of the education system and adopting policies that not only increase expenditures for education but also improve specific aspects. These policies enable the education system of Kosova to become a significant contributor to economic performance and sustainable long-term growth.