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The Relationship between Educational Expenditure and Economic Growth: The Case of Turkey

Year 2020, Volume: 7 Issue: 2, 114 - 126, 21.09.2020

Abstract

Education displays a high impact on the development level occurrence of the countries. Therefore, education spending in a country can lead to significant increases in the economic growth of the country, which is one of the important indicators of the welfare level of the countries. Empirical studies in the literature find different results from time to time on the effect of education expenditures on economic growth. While many studies have shown that education expenditure has positive effects on the economic growth of the country, the causal relationship between these variables is mostly from educational expenditures to economic growth. In some empirical studies, it is emphasized that the causality relationship between these two variables is two-way. However, much fewer studies have shown that there is no relationship between spending on education and economic growth. In this study, the relationship between economic growth and education expenditure was investigated for the period of 1998:Q1 and 2019:Q4 in Turkey. After examining whether the series used in the study were stationary, a cointegration analysis was conducted to determine whether there is a cointegration relationship between education expenditures and economic growth variables. Moreover, Granger causality test is done to analyze the direction of the relationship between education expenditure and economic growth. The results of the study shows that education expenditures have an important impact on economic growth in Turkey. Therefore, education policies should be developed in order to increase the development level of the country.

References

  • Afşar, M. (2009). Türkiye’de eğitim yatırımları ve ekonomik büyüme ilişkisi. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 9(1), 85-98.
  • Akçacı, T. (2013). Eğitim harcamalarının iktisadi büyümeye etkisi. Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4(5), 65-79.
  • Akıncı, A. (2017). Türkiye'de eğitim harcamalarının ekonomik büyüme üzerindeki etkisi. Maliye Dergisi, 173, 387-397.
  • Al-Yousif, Y. K. (2008). Education expenditure and economic growth: Some empirical evidence from the GCC countries. The Journal of Developing Areas, 69-80.
  • Bozkurt, H.(2007). Zaman Serileri Analizi. Bursa: Ekin Kitabevi.
  • Çalışkan, Ş., Karabacak, M. & Meçik, O. (2018). Türkiye’de uzun dönemde eğitim ve sağlık harcamaları ile ekonomik büyüme ilişkisi. Dokuz Eylül Üniversitesi İktisadi İdari Bilimler Fakültesi Dergisi, 33(1), 75-96.
  • Dickey, D. & Fuller, W. A. (1979). distribution of the estimates for autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427-431.
  • Engle, R.F. & Granger, C.W.J. (1987). Co-integration and error-correction: Representation, estimation and testing. Econometrica, 55(2), 251-276.
  • Eriçok, R. E. & Yılancı, V. (2013). Eğitim harcamaları ve ekonomik büyüme ilişkisi: Sınır testi yaklaşımı. Bilgi Ekonomisi ve Yönetimi Dergisi, 8(1), 87-101.
  • Gujarati, D. N. (1999). Temel Ekonometri, (Çev. Ü. Şenesen ve G. G. Şenesen). İstanbul: Literatür Yayınları.
  • Hussin, M. Y. M., Muhammad, F., Hussin, M. F. A., & Razak, A. A. (2012). Education expenditure and economic growth: A causal analysis for Malaysia. Journal of Economics and Sustainable Development, 3(7), 71-81.
  • Idrees, A. S., & Siddiqi, M. W. (2013). Does public education expenditure cause economic growth? comparison of developed and developing countries. Pakistan Journal of Commerce and Social Sciences (PJCSS), 7(1), 174-183.
  • Kızılkaya, O., & Koçak, E. (2014). Kamu eğitim harcamaları ve ekonomik büyüme ilişkisi: Seçilmiş OECD ülkeleri üzerine bir panel veri analizi. Ekonomi Bilimleri Dergisi, 6(1), 17-32.
  • Lucas, R. (1988) Robert, L. (1988). On the mechanics of economic development. Journal of monetary economics, 22(l), 3-42.
  • Mallick, L., & Dash, D. P. (2015). Does expenditure on education affect economic growth in India? Evidence from cointegration and Granger causality analysis. Theoretical & Applied Economics, 22(4).
  • Özbek, R. İ., & Kılıç, R. (2018). Sağlık ve eğitim hizmetleri ile ekonomik büyüme ilişkisi: OECD ülkeleri uygulaması. ODÜ Sosyal Bilimler Araştırmaları Dergisi (ODÜSOBİAD), 8(2), 369-391.
  • Pamuk, M., & Bektaş, H. (2014). Türkiye’de eğitim harcamaları ve ekonomik büyüme arasındaki ilişki: ARDL sınır testi yaklaşımı. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 2(2).
  • Pesaran, M., Shin, Y. and Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326.
  • Schultz, T. W. (1961). Investment in human capital. The American economic review,51(1), 1-17. Selim, S., Purtaş, Y., & Uysal, D. (2014). G-20 ülkelerinde eğitim harcamalarının ekonomik büyüme üzerindeki etkisi. Optimum Ekonomi ve Yönetim Bilimleri Dergisi, 1(2), 93-102.
  • Şimşek, T. (2017). Türkiye’de eğitim harcaması ve ekonomik büyüme: ARDL sınır testi. Enderun, 1(1), 54-60.
  • Uçan, O. & Yeşilyurt, H. (2016). Türkiye’de eğitim harcamaları ve büyüme ilişkisi. Niğde Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9(2), 179-185.
  • Yardımcıoğlu, F., Gürdal, T., & Altundemir, M. E. (2014). Education and economic growth: A panel cointegration approach in OECD countries (1980-2008). Education and Science, 39(173).
  • Yavuz, N.(2005). Türkiye’de ihracat ve iktisadi büyüme arasındaki nedensellik analizi. Sosyal Siyaset Konferansları Dergisi,49, 961-972.

The Relationship between Educational Expenditure and Economic Growth: The Case of Turkey

Year 2020, Volume: 7 Issue: 2, 114 - 126, 21.09.2020

Abstract

Education displays a high impact on the development level occurrence of the countries. Therefore, education spending in a country can lead to significant increases in the economic growth of the country, which is one of the important indicators of the welfare level of the countries. Empirical studies in the literature find different results from time to time on the effect of education expenditures on economic growth. While many studies have shown that education expenditure has positive effects on the economic growth of the country, the causal relationship between these variables is mostly from educational expenditures to economic growth. In some empirical studies, it is emphasized that the causality relationship between these two variables is two-way. However, much fewer studies have shown that there is no relationship between spending on education and economic growth. In this study, the relationship between economic growth and education expenditure was investigated for the period of 1998:Q1 and 2019:Q4 in Turkey. After examining whether the series used in the study were stationary, a cointegration analysis was conducted to determine whether there is a cointegration relationship between education expenditures and economic growth variables. Moreover, Granger causality test is done to analyze the direction of the relationship between education expenditure and economic growth. The results of the study shows that education expenditures have an important impact on economic growth in Turkey. Therefore, education policies should be developed in order to increase the development level of the country.

References

  • Afşar, M. (2009). Türkiye’de eğitim yatırımları ve ekonomik büyüme ilişkisi. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 9(1), 85-98.
  • Akçacı, T. (2013). Eğitim harcamalarının iktisadi büyümeye etkisi. Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4(5), 65-79.
  • Akıncı, A. (2017). Türkiye'de eğitim harcamalarının ekonomik büyüme üzerindeki etkisi. Maliye Dergisi, 173, 387-397.
  • Al-Yousif, Y. K. (2008). Education expenditure and economic growth: Some empirical evidence from the GCC countries. The Journal of Developing Areas, 69-80.
  • Bozkurt, H.(2007). Zaman Serileri Analizi. Bursa: Ekin Kitabevi.
  • Çalışkan, Ş., Karabacak, M. & Meçik, O. (2018). Türkiye’de uzun dönemde eğitim ve sağlık harcamaları ile ekonomik büyüme ilişkisi. Dokuz Eylül Üniversitesi İktisadi İdari Bilimler Fakültesi Dergisi, 33(1), 75-96.
  • Dickey, D. & Fuller, W. A. (1979). distribution of the estimates for autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427-431.
  • Engle, R.F. & Granger, C.W.J. (1987). Co-integration and error-correction: Representation, estimation and testing. Econometrica, 55(2), 251-276.
  • Eriçok, R. E. & Yılancı, V. (2013). Eğitim harcamaları ve ekonomik büyüme ilişkisi: Sınır testi yaklaşımı. Bilgi Ekonomisi ve Yönetimi Dergisi, 8(1), 87-101.
  • Gujarati, D. N. (1999). Temel Ekonometri, (Çev. Ü. Şenesen ve G. G. Şenesen). İstanbul: Literatür Yayınları.
  • Hussin, M. Y. M., Muhammad, F., Hussin, M. F. A., & Razak, A. A. (2012). Education expenditure and economic growth: A causal analysis for Malaysia. Journal of Economics and Sustainable Development, 3(7), 71-81.
  • Idrees, A. S., & Siddiqi, M. W. (2013). Does public education expenditure cause economic growth? comparison of developed and developing countries. Pakistan Journal of Commerce and Social Sciences (PJCSS), 7(1), 174-183.
  • Kızılkaya, O., & Koçak, E. (2014). Kamu eğitim harcamaları ve ekonomik büyüme ilişkisi: Seçilmiş OECD ülkeleri üzerine bir panel veri analizi. Ekonomi Bilimleri Dergisi, 6(1), 17-32.
  • Lucas, R. (1988) Robert, L. (1988). On the mechanics of economic development. Journal of monetary economics, 22(l), 3-42.
  • Mallick, L., & Dash, D. P. (2015). Does expenditure on education affect economic growth in India? Evidence from cointegration and Granger causality analysis. Theoretical & Applied Economics, 22(4).
  • Özbek, R. İ., & Kılıç, R. (2018). Sağlık ve eğitim hizmetleri ile ekonomik büyüme ilişkisi: OECD ülkeleri uygulaması. ODÜ Sosyal Bilimler Araştırmaları Dergisi (ODÜSOBİAD), 8(2), 369-391.
  • Pamuk, M., & Bektaş, H. (2014). Türkiye’de eğitim harcamaları ve ekonomik büyüme arasındaki ilişki: ARDL sınır testi yaklaşımı. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 2(2).
  • Pesaran, M., Shin, Y. and Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326.
  • Schultz, T. W. (1961). Investment in human capital. The American economic review,51(1), 1-17. Selim, S., Purtaş, Y., & Uysal, D. (2014). G-20 ülkelerinde eğitim harcamalarının ekonomik büyüme üzerindeki etkisi. Optimum Ekonomi ve Yönetim Bilimleri Dergisi, 1(2), 93-102.
  • Şimşek, T. (2017). Türkiye’de eğitim harcaması ve ekonomik büyüme: ARDL sınır testi. Enderun, 1(1), 54-60.
  • Uçan, O. & Yeşilyurt, H. (2016). Türkiye’de eğitim harcamaları ve büyüme ilişkisi. Niğde Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9(2), 179-185.
  • Yardımcıoğlu, F., Gürdal, T., & Altundemir, M. E. (2014). Education and economic growth: A panel cointegration approach in OECD countries (1980-2008). Education and Science, 39(173).
  • Yavuz, N.(2005). Türkiye’de ihracat ve iktisadi büyüme arasındaki nedensellik analizi. Sosyal Siyaset Konferansları Dergisi,49, 961-972.
There are 23 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Reseach Articles
Authors

Merve Çelik Keçili 0000-0002-3343-3115

Ethem Esen 0000-0002-5356-1798

Publication Date September 21, 2020
Acceptance Date May 20, 2020
Published in Issue Year 2020 Volume: 7 Issue: 2

Cite

APA Çelik Keçili, M., & Esen, E. (2020). The Relationship between Educational Expenditure and Economic Growth: The Case of Turkey. Equinox Journal of Economics Business and Political Studies, 7(2), 114-126.


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