IDEAS home Printed from https://ideas.repec.org/a/aka/aoecon/v68y2018i2p271-294.html
   My bibliography  Save this article

The Impact of Education Expenditures on Growth in the EU28 – A Spatial Econometric Perspective

Author

Listed:
  • Lena Malešević Perović

    (Faculty of Economics, Business and Tourism, University of Split, Croatia)

  • Silvia Golem

    (Faculty of Economics, Business and Tourism, University of Split, Croatia)

  • Maja Mihaljević Kosor

    (Faculty of Economics, Business and Tourism, University of Split, Croatia)

Abstract

This paper analyses spatial impact of government expenditures on education on economic growth in the EU28 countries during the period 2004–2013. Employing a novel econometric technique that allows for the estimation of spatial spillovers, our results indicate that government expenditures on education significantly and positively influence GDP growth. Moreover, the indirect i.e. the spillover effects are quite large suggesting that the growth models should account for spatial interdependencies. Precisely, we find that education expenditures in one country affect GDP growth in the neighbouring countries, meaning that these spillovers are geographical in nature. Moreover, we find that the degree of interdependence among countries varies according to the average GDP per capita even if their geographical distances are identical. Additionally, immigration is found to be an important channel of spatial transmission.

Suggested Citation

  • Lena Malešević Perović & Silvia Golem & Maja Mihaljević Kosor, 2018. "The Impact of Education Expenditures on Growth in the EU28 – A Spatial Econometric Perspective," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(2), pages 271-294, June.
    • Handle: RePEc:aka:aoecon:v:68:y:2018:i:2:p:271-294
    Note: The authors thank Giovanni Millo for helpful advices, technical help and support in writing of this paper. This work has been fully supported by Croatian Science Foundation under the project No. UIP-2013-11-9558.
    as

    Download full text from publisher

    File URL: http://www.akademiai.com/doi/pdf/10.1556/032.2018.68.2.5
    Download Restriction: subscription
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    government spending on education; GDP growth; spatial panel analysis; spillover effects;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H1 - Public Economics - - Structure and Scope of Government
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I2 - Health, Education, and Welfare - - Education
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    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:aka:aoecon:v:68:y:2018:i:2:p:271-294. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Kriston, Orsolya (email available below). General contact details of provider: https://akademiai.hu/ .

    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.