Do public education expenditures really lead to economic growth? Evidence from Turkey


International Research Journal of Finance and Economics, vol.65, pp.12-24, 2011 (Refereed Journals of Other Institutions) identifier

  • Publication Type: Article / Article
  • Volume: 65
  • Publication Date: 2011
  • Title of Journal : International Research Journal of Finance and Economics
  • Page Numbers: pp.12-24


The effect of government expenditures on economic growth is one of the key issues in economic literature. The issue has been extensively held regarding total government expenditures. This kind of intellect has a possibility to ignore the well-known positive impact of human capital on economic growth posited by endogenous growth theories. Through the analysis of public expenditures by government in detail, direct and indirect effects of human capital investments can also be apprehended. This article maps out a framework for thinking about the issue in the context of the causal relationship between public educational expenditures and economic growth in Turkey over the period 1973-2009. The empirical results based on Toda and Yamamoto (1995) causality analysis show that the relationship between government expenditures and growth is not in the form of bidirectional causation as causality runs only from economic growth to educational spending but not expenditures on education to economic growth. © EuroJournals Publishing, Inc. 2011.