IDEAS home Printed from https://ideas.repec.org/a/aid/journl/v3y2020i4p48-71.html
   My bibliography  Save this article

Empirical Evaluation of the Education Expenditure Impact on Economic Growth

Author

Listed:
  • Olena Vorhach

    (Institute of Industrial Economics of the National Academy of Sciences of Ukraine, Kyiv, Ukraine)

Abstract

This study expounds empirical evaluation of (a) the interrelation between higher education expenditure and the share of highly qualified employed population of Ukraine, (b) the dependence of the population qualification level on the higher education expenditure in foreign countries and (c) the dependence of these countries’ GDP on the qualification of people. It has been hypothesized that an increase in funding for higher education contributes to the growth of the share of highly qualified population and the GDP volume per capita. The regression analysis results indicate inverse dependence of the population's qualification on real expenditure on higher education in Ukraine, that is, as the expenditure decreases, the share of population with high qualification increases, while the number of higher school teachers goes down. This situation is inconsistent with economic theory and is fraught with long-term adverse consequences for the national economy. The analysis of the average figures in 24 foreign countries has not revealed a pronounced dependence of the population qualification on expenditure on higher education and that of GDP on qualification. Nevertheless, the general trend is observed, i.e., in the countries with heavier expenditure on higher education there is a higher percentage of qualified population and higher GDP. The same trend, but in a more explicit form, has been established based on the results of regression analysis for the individual EU countries, confirming the research hypothesis.

Suggested Citation

  • Olena Vorhach, 2020. "Empirical Evaluation of the Education Expenditure Impact on Economic Growth," Virtual Economics, The London Academy of Science and Business, vol. 3(4), pages 48-71, October.
    • Handle: RePEc:aid:journl:v:3:y:2020:i:4:p:48-71
    DOI: 10.34021/ve.2020.03.04(3)
    as

    Download full text from publisher

    File URL: https://virtual-economics.eu/index.php/VE/article/download/84/61
    Download Restriction: no
    File URL: https://libkey.io/10.34021/ve.2020.03.04(3)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rosenzweig, Mark R, 1990. "Population Growth and Human Capital Investments: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 38-70, October.
    2. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    3. Lau, Lawrence J. & Jamison, Dean T. & Liu, Shu-Cheng & Rivkin, Steven, 1993. "Education and economic growth Some cross-sectional evidence from Brazil," Journal of Development Economics, Elsevier, vol. 41(1), pages 45-70, June.
    4. Henryk Dzwigol, 2019. "The concept of the system approach of the enterprise restructuring process," Virtual Economics, The London Academy of Science and Business, vol. 2(4), pages 46-70, October.
    Full references (including those not matched with items on IDEAS)

    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. Aysit Tansel & Nil Demet Güngör, 2016. "Gender Effects of Education on Economic Development in Turkey," World Scientific Book Chapters, in: Nadereh Chamlou & Massoud Karshenas (ed.), Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies, chapter 3, pages 57-86, World Scientific Publishing Co. Pte. Ltd..
    2. Mukhopadhyay, Jyoti Prasad & Banik, Nilanjan, 2013. "The Red Corridor Region of India: What Do the Data Tell Us?," MPRA Paper 58616, University Library of Munich, Germany.
    3. Cécile Perret, 2011. "Des Modeles De Croissance Aux Theories Du Developpement Territorial Endogene : Vers Une Prise En Compte Du Capital Social," Working Papers hal-00995429, HAL.
    4. Strulik, Holger & Prettner, Klaus & Prskawetz, Alexia, 2010. "R\&D-based Growth in the Post-modern Era," Hannover Economic Papers (HEP) dp-457, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    5. Ouoba, Youmanli, 2020. "Natural resources fund types and capital accumulation: A comparative analysis," Resources Policy, Elsevier, vol. 66(C).
    6. Muhammad Ali & Abiodun Egbetokun & Manzoor Hussain Memon, 2018. "Human Capital, Social Capabilities and Economic Growth," Economies, MDPI, vol. 6(1), pages 1-18, January.
    7. Xanthippi Chapsa & Athanasios L. Athanasenas & Nikolaos Tabakis, 2019. "Real Convergence in EU-15: A Comparative Analysis of North versus South Europe," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 3-21.
    8. David E. BLOOM & Jocelyn E. FINLAY, 2009. "Demographic Change and Economic Growth in Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 45-64, June.
    9. Narayan, Seema & Narayan, Paresh Kumar & Mishra, Sagarika, 2010. "Investigating the relationship between health and economic growth: Empirical evidence from a panel of 5 Asian countries," Journal of Asian Economics, Elsevier, vol. 21(4), pages 404-411, August.
    10. Aras, Osman Nuri & Öztürk, Mustafa, 2017. "The Relationship Between Human Capital and MBA Education: The Case of Turkey," MPRA Paper 81843, University Library of Munich, Germany.
    11. Tao, Hung-Lin & Stinson, Thomas F., 1997. "An Alternative Measure of Human Capital Stock," Bulletins 7466, University of Minnesota, Economic Development Center.
    12. Graff, Michael, 1998. "Educational imbalance, socio-economic inequality, political freedom and economic development," Dresden Discussion Paper Series in Economics 03/98, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    13. Ricardo Correa Cangussu & Marcio Antonio Salvato & Luciano Nakabashi, 2008. "An analysis of human capital on the Brazilian States income level: MRW versus Mincer," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211041150, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    14. Creina Day & Steve Dowrick, 2004. "Ageing Economics: Human Capital, Productivity and Fertility," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 11(1), pages 3-20.
    15. Doré, Natalia I. & Teixeira, Aurora A.C., 2023. "The role of human capital, structural change, and institutional quality on Brazil's economic growth over the last two hundred years (1822–2019)," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 1-12.
    16. Behrman, Jere R. & Khan, Shahrukh & Ross, David & Sabot, Richard, 1997. "School quality and cognitive achievement production: A case study for rural Pakistan," Economics of Education Review, Elsevier, vol. 16(2), pages 127-142, April.
    17. Erich Gundlach, 1997. "Human capital and economic development: A macroeconomic assessment," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 32(1), pages 23-35, January.
    18. Aysit Tansel & Nil Demet Güngör, 2016. "Gender Effects of Education on Economic Development in Turkey," World Scientific Book Chapters,in: Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies, chapter 3, pages 57-86 World Scientific Publishing Co. Pte. Ltd..
    19. Carlos E. Posada & Eliana Carolina Rubiano, 2007. "El crecimiento económico internacional en la segunda mitad del siglo XX ¿que factores lo determinaron?," Borradores de Economia 3956, Banco de la Republica.
    20. Tulio Antonio Cravo & Elias Soukiazis, 2009. "Educational Thresholds and Economic Growth: Empirical Evidence from Brazilian States," Working Papers 2009.1, International Network for Economic Research - INFER.

    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:aid:journl:v:3:y:2020:i:4:p:48-71. 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: Aleksy Kwilinski (email available below). General contact details of provider: https://edirc.repec.org/data/akwilin.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.