The relationship between government expenditures on education and economic growth: The case of Azerbaijan
Research in World Economy, vol.11, no.1, pp.195-201, 2020 (Scopus)
- 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
- Open Archive Collection: Article, Digital Heritage Collection
- 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.