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Education and Economic Growth in India


  • Chakraborty, K.S
  • krishnankutty, Raveesh


The paper focuses on the expenditure on education as determinant on economic growth. The study examine the relationship between education and economic growth in total number of states as a whole , Non special category states, special category states and North eastern states separately. We have considered Net State Domestic Product at Factor cost on constant prices (NSDP) and Per-capita Net State Domestic Product at Factor cost ( PerNSDP)on constant price as proxy for economic growth. Using the panel least square with fixed and random effect NSDP and Per NSDP has regressed separately on Expenditure on education and Expenditure on education as a percentage of aggregate expenditure. The result of the study shows that expenditure on education is positively influencing the growth of the economy. But Expenditure on education as a percentage of aggregate expenditure is negatively influencing the economic growth in case of total states as a whole and Non special category states. However it is not showing significance for northeastern states.

Suggested Citation

  • Chakraborty, K.S & krishnankutty, Raveesh, 2012. "Education and Economic Growth in India," MPRA Paper 48524, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:48524

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    References listed on IDEAS

    1. Annabi, Nabil & Harvey, Simon & Lan, Yu, 2011. "Public expenditures on education, human capital and growth in Canada: An OLG model analysis," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 852-865.
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    More about this item


    education; economic growth; expenditure on education; north east state;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General


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