The relationship between government expenditures on education and economic growth: The case of Azerbaijan

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Mukhtarov S., Mammadov I., Humbatova S.

Research in World Economy, vol.11, no.1, pp.195-201, 2020 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 11 Issue: 1
  • Publication Date: 2020
  • Doi Number: 10.5430/rwe.v11n1p195
  • Journal Name: Research in World Economy
  • Journal Indexes: Scopus
  • Page Numbers: pp.195-201
  • Keywords: Azerbaijan, Cointegration, Economic growth, Government education expenditures
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This paper investigates the impact of government's education expenditures, gross capital formation and total population on economic growth in Azerbaijan during 1995-2018 using the different cointegration methods, namely, ARDLBT, DOLS, and CCR. The results from cointegration methods approve presence of long-run relationship among the variables. The estimation results show that government's expenditures on education, gross capital formation and total population have a positive and statistically significant impact on economic growth in the long-run. The paper concludes that a concerted effort should be made by policy makers to increase educational investment in order to escelate economic growth.