The relationship between public education expenditure and economic growth: The case of India
The 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.
|Date of creation:||Dec 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (01382) 344375
Fax: (01382) 344691
Web page: http://www.dundee.ac.uk/econman/
More information through EDIRC
References listed on IDEAS
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.:
- 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," Indian Council for Research on International Economic Relations, New Delhi Working Papers 179, Indian Council for Research on International Economic Relations, New Delhi, India.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
- 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.
- Alan Krueger & Mikael Lindahl, 2000.
"Education for Growth: Why and For Whom?,"
808, Princeton University, Department of Economics, Industrial Relations Section..
- Abhijeet, Chandra, 2010. "Does Government Expenditure on Education Promote Economic Growth? An Econometric Analysis," MPRA Paper 25480, University Library of Munich, Germany.
- Campos, Nauro F. & Nugent, Jeffrey B., 1998. "Institutions and growth: can human capital be a link?," Revista CEPAL, United Nations Economic Commission for Latin America and the Caribbean (ECLAC), April.
- A. M. Nalla Gounden, 1967. "Investment in Education in India," Journal of Human Resources, University of Wisconsin Press, vol. 2(3), pages 347-358.
- Christopher A. Pissarides, 2000. "Human Capital and Growth: A Synthesis Report," OECD Development Centre Working Papers 168, OECD Publishing.
- Sanat Kaul, 2006. "Higher Education in India - Seizing The Opportunity," Development Economics Working Papers 22169, East Asian Bureau of Economic Research.
- 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.
- Pissarides, Christopher A, 1997. "Learning by Trading and the Returns to Human Capital in Developing Countries," World Bank Economic Review, World Bank Group, vol. 11(1), pages 17-32, January.
- 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, vol. 3(1), pages 1-69.
When requesting a correction, please mention this item's handle: RePEc:dun:dpaper:273. See general information about how to correct material in RePEc.
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.