IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/86667.html
   My bibliography  Save this paper

Education Expenditure and Economic Growth in Mauritius: An Application of the Bounds Testing Approach

Author

Listed:
  • Sunde, Tafirenyika

Abstract

This study examines the relationship between education expenditure and economic growth in Mauritius. The study employed the ARDL bounds testing methodology for the period 1976 to 2016. The study found that education expenditure Granger causes economic growth in Mauritius in the short run. In addition, the study also found that economic growth does not Granger cause education expenditure in Mauritius in the short run. However, in the long-run, the study found that there are long-run relationships between education expenditure and economic growth in both equations; and this means that an increase in either of the variables will eventually lead to an increase in the other variable. The study, therefore, found support for the hypothesis that investment in education raises economic growth. This means that Mauritius has the potential to benefit from further investments in education in the future.

Suggested Citation

  • Sunde, Tafirenyika, 2017. "Education Expenditure and Economic Growth in Mauritius: An Application of the Bounds Testing Approach," MPRA Paper 86667, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:86667
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/86667/1/MPRA_paper_86667.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sánchez, Marco V. & Cicowiez, Martín, 2014. "Trade-offs and Payoffs of Investing in Human Development," World Development, Elsevier, vol. 62(C), pages 14-29.
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Yousra Mekdad & Aziz Dahmani & Monir Louadj, 2014. "Public spending on education and Economic Growth in Algeria: Causality Test," Proceedings of International Academic Conferences 0101002, International Institute of Social and Economic Sciences.
    4. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.
    5. Goh, Soo Khoon & Sam, Chung Yan & McNown, Robert, 2017. "Re-examining foreign direct investment, exports, and economic growth in asian economies using a bootstrap ARDL test for cointegration," Journal of Asian Economics, Elsevier, vol. 51(C), pages 12-22.
    6. Bosupeng, Mpho, 2015. "Payoffs of Education Expenditure In Botswana: Long Run Economic Growth Implications," MPRA Paper 77915, University Library of Munich, Germany, revised 2015.
    7. John Whalley & Xiliang Zhao, 2010. "The Contribution of Human Capital to China's Economic Growth," NBER Working Papers 16592, National Bureau of Economic Research, Inc.
    8. Ageli, Dr Mohammed Moosa, 2013. "Does Education Expenditure Promote Economic Growth in Saudi Arabia? An Econometric Analysis," MPRA Paper 46673, University Library of Munich, Germany.
    9. Benos, Nikos & Zotou, Stefania, 2014. "Education and Economic Growth: A Meta-Regression Analysis," World Development, Elsevier, vol. 64(C), pages 669-689.
    10. John Whalley & Xiliang Zhao, 2013. "The Contribution Of Human Capital To China'S Economic Growth," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-22.
    11. Lingaraj MALLICK & Devi Prasad DASH, 2015. "Does Expenditure on Education Affect Economic Growth in India? Evidence from Cointegration and Granger Causality Analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(605), W), pages 63-74, Winter.
    12. repec:agr:journl:v:4(605):y:2015:i:4(605):p:63-74 is not listed on IDEAS
    13. Sunde, Tafirenyika, 2017. "Foreign direct investment, exports and economic growth: ADRL and causality analysis for South Africa," Research in International Business and Finance, Elsevier, vol. 41(C), pages 434-444.
    14. Jalil, Abdul & Idrees, Muhammad, 2013. "Modeling the impact of education on the economic growth: Evidence from aggregated and disaggregated time series data of Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 383-388.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kouton, Jeffrey, 2018. "Education expenditure and economic growth: Some empirical evidence from Côte d’Ivoire," MPRA Paper 88350, University Library of Munich, Germany.
    2. Georgios Garafas & Ioannis Sotiropoulos & Georgios Georgakopoulos, 2020. "Human Capital and Economic Growth in Greece: Evidence from the Toda–Yamamoto Approach," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(3-4), pages 6-11, July-Dece.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kouton, Jeffrey, 2018. "Education expenditure and economic growth: Some empirical evidence from Côte d’Ivoire," MPRA Paper 88350, University Library of Munich, Germany.
    2. Sami Chaabouni & Mounir Ben Mbarek, 2024. "What Will Be the Impact of the COVID-19 Pandemic on the Human Capital and Economic Growth? Evidence from Eurozone," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2482-2498, March.
    3. Yassin Elshain Yahia & Haiyun Liu & Abdalla Sirag & Sayyed Sadaqat Hussain Shah, 2020. "The Impacts of Intra-Trade on Industrialization: Evidence from COMESA," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(2), pages 75-101, June.
    4. Nesrine Dardouri & Abdelkader Aguir & Ramzi Farhani & Mounir Smida, 2023. "Revisiting the Determinants of Investment- The Case of Tunisia," Post-Print hal-04101430, HAL.
    5. Bibhuti Sarker & Farid Khan, 2020. "Nexus between foreign direct investment and economic growth in Bangladesh: an augmented autoregressive distributed lag bounds testing approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-18, December.
    6. Lukman Ayinde Olorogun, 2022. "Revisiting the Nexus of FDI-Led Growth Hypothesis and Economic Development in Rwanda: a Johansen-ARDL Approach to Cointegration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2695-2717, December.
    7. Liping Liao & Minzhe Du & Bing Wang & Yanni Yu, 2019. "The Impact of Educational Investment on Sustainable Economic Growth in Guangdong, China: A Cointegration and Causality Analysis," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    8. Udi Joshua & Festus V. Bekun & Samuel A. Sarkodie, 2020. "New Insight into the Causal Linkage between Economic Expansion, FDI, Coal consumption, Pollutant emissions and Urbanization in South Africa," Working Papers 20/011, European Xtramile Centre of African Studies (EXCAS).
    9. Kostakis, Ioannis & Lolos, Sarantis & Doulgeraki, Charikleia, 2020. "Cultural Heritage led Growth: Regional evidence from Greece (1998-2016)," MPRA Paper 98443, University Library of Munich, Germany.
    10. Elyas, Redha & Masih, Mansur, 2019. "Does environmental awareness determine GDP growth ? evidence from Singapore based on ARDL and NARDL approaches," MPRA Paper 94683, University Library of Munich, Germany.
    11. Mohammad Imdadul Haque, 2019. "Growth Accounting for Saudi Arabia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(6), pages 691-701, June.
    12. Setareh Shirkhani & Sami Fethi & Andrew Adewale Alola, 2021. "Tourism-Related Loans as a Driver of a Small Island Economy: A Case of Northern Cyprus," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    13. Faizah Adhama Mukhtar & Kabiru Sufi Sa’id & Hadiza Nasir Iro, 2021. "Human Capital and Economic performance in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(1), pages 68-72, January.
    14. Wanniarachchi, Sasindu Lakruwan, 2020. "The Nexus among External Debt and Economic Growth: Evidence from South Asia," OSF Preprints ghfdb, Center for Open Science.
    15. Hrushikesh Mallick & Mantu Kumar Mahalik & Hemachandra Padhan, 2020. "Does globalization exacerbate income inequality in two largest emerging economies? The role of FDI and remittances inflows," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 443-480, December.
    16. Christopher P. P. Shafuda & Utpal Kumar De, 2020. "Government expenditure on human capital and growth in Namibia: a time series analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-14, December.
    17. Salim, Ruhul & Yao, Yao & Chen, George S., 2017. "Does human capital matter for energy consumption in China?," Energy Economics, Elsevier, vol. 67(C), pages 49-59.
    18. Sayef Bakari & Mohamed Mabrouki, 2017. "The Effect Of Agricultural Exports On Economic Growth In South-Eastern Europe: An Empirical Investigation Using Panel Data," Journal of Smart Economic Growth, , vol. 2(4), pages 49-64, December.
    19. Melike Bildirici & Sema Yılmaz Genç & Özgür Ömer Ersin, 2023. "Effects of Fiscal and Monetary Policies, Energy Consumption and Economic Growth on CO 2 Emissions in the Turkish Economy: Nonlinear Bootstrapping NARDL and Nonlinear Causality Methods," Sustainability, MDPI, vol. 15(13), pages 1-23, July.
    20. Dan Lupu & Mihai Bogdan Petrisor & Ana Bercu & Mihaela Tofan, 2018. "The Impact of Public Expenditures on Economic Growth: A Case Study of Central and Eastern European Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(3), pages 552-570, February.

    More about this item

    Keywords

    Education expenditure; economic growth; Granger causality; ARDL; Mauritius;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:86667. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.