The relationship between public education expenditure and economic growth: The case of India
AbstractThe paper reviews the theoretical and the empirical case for public investment in education in India. Though the theoretical literature provides a backing for such a policy, the empirical literature fails to find a robust relation between education expenditure and growth. Expenditure on education is a necessary but not a sufficient condition for growth. It seems that the effectiveness of education expenditure depends on the institutional and labour market characteristics of the economy. The effectiveness of education investments also depends on other factors such as trade openness. Due to these aforesaid factors, we argue that the empirical relation between education expenditure and growth for India has been inconsistent.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 273.
Length: 14 pages
Date of creation: Dec 2012
Date of revision:
Public education expenditure; economic growth; trade openness; India;
Find related papers by JEL classification:
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-CWA-2013-01-07 (Central & Western Asia)
- NEP-EDU-2013-01-07 (Education)
- NEP-FDG-2013-01-07 (Financial Development & Growth)
- NEP-MAC-2013-01-07 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- William F. Blankenau & Nicole B. Simpson & Marc Tomljanovich, 2007. "Public Education Expenditures, Taxation, and Growth: Linking Data to Theory," American Economic Review, American Economic Association, vol. 97(2), pages 393-397, May.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990.
"The Allocation of Talent: Implicationsfor Growth,"
University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State
65, Chicago - Center for Study of Economy and State.
- Barry Bosworth & Susan M. Collins & Arvind Virmani, 2007.
"Sources of Growth in the Indian Economy,"
NBER Working Papers
12901, National Bureau of Economic Research, Inc.
- Barry Bosworth & Susan M. Collins & Arvind Virmani, 2006. "Sources of Growth in the Indian Economy," India Policy Forum, Global Economy and Development Program, The Brookings Institution, Global Economy and Development Program, The Brookings Institution, vol. 3(1), pages 1-69.
- Sanat Kaul, 2006. "Higher Education in India: Seizing the Opportunity," Indian Council for Research on International Economic Relations, New Delhi Working Papers, Indian Council for Research on International Economic Relations, New Delhi, India 179, Indian Council for Research on International Economic Relations, New Delhi, India.
- Pissarides, Christopher A, 1997. "Learning by Trading and the Returns to Human Capital in Developing Countries," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(1), pages 17-32, January.
- Alan B. Krueger & Mikael Lindahl, 2000.
"Education for Growth: Why and For Whom?,"
NBER Working Papers
7591, National Bureau of Economic Research, Inc.
- George Psacharopoulos & Harry Anthony Patrinos, 2004.
"Returns to investment in education: a further update,"
Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
- Sanat Kaul, 2006. "Higher Education in India - Seizing The Opportunity," Development Economics Working Papers 22169, East Asian Bureau of Economic Research.
- Christopher A. Pissarides, 2000. "Human Capital and Growth: A Synthesis Report," OECD Development Centre Working Papers 168, OECD Publishing.
- Niloy Bose & M. Emranul Haque & Denise R. Osborn, 2007. "Public Expenditure And Economic Growth: A Disaggregated Analysis For Developing Countries," Manchester School, University of Manchester, vol. 75(5), pages 533-556, 09.
- Abhijeet, Chandra, 2010. "Does Government Expenditure on Education Promote Economic Growth? An Econometric Analysis," MPRA Paper 25480, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrzej Kwiatkowski).
If references are entirely missing, you can add them using this form.