Does Government Expenditure in Education Cause Economic Growth: ASEAN-5 Perspective

Authors

  • S. Taasim

Abstract

Debates on linkages between education expenditure and economic growth have gained attention from economists, especially based on Wagner Law. Education expenditure is listed as a government public expenditure with the highest accumulation in yearly budget for ASEAN-5, which includes Malaysia, Indonesia, the Philippines, Singapore and Thailand. This empirical study aimed to examine the relation between education expenditure and economic growth in ASEAN-5 over the 2000-2018 periods. To achieve the objective, it was more appropriate to examine the estimation model was. With regard to the fixed effects model, there was no relation between education expenditure and economic growth. Furthermore, the analysis has proved that labour force and capital accumulation were important variables which influence economic growth.

Downloads

Download data is not yet available.

References

Bils, M. & Klenow (2000), “Does Schooling Cause Growth?”, American Economic Review 90, 1160-1183

Devarajan, S., Swaroop, V., & Zou, H. (1996), “The Composition of Public Expenditure and Economic Growth”,Journal of Monetary Economics 37, 313-344.

Diener, E. S., Eunkook, M. L., Richard, E., Smith, Heidi, L. (1999) Subjective well-being: three decades of progress. Psychological Bulletin. Vol 125 (2). 276-302.

Greene, W.H. (2003) Econometric Analysis, 5th. Ed.. New Jersey, Prentice Hall.

Johnston, J., & Dinardo, J. (1996) Econometric Methods, 4th. Ed. McGrawHill/Irwin.

Imai, K. and Kim, I. S. (2019) When Should We Use Unit Fixed Effects Regression Models for Causal Inference with Longitudinal Data?. American Journal of Political Science, Vol. 63, No. 2, April 2019, Pp. 467–490.

Kasri, R. A. (2011). Time series Evidence on Education and Economic Growth. Economic. Journal of Emerging Market, 3(2), 109–123.

Lingaraj Mallick, Pradeep Kumar Das, Kalandi Charan Pradhan (2018) Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis. Theoretical and Applied Economics Volume XXIII (2016), No. 2(607), Summer, pp. 173-186.

Lai, W.S. & Yussof, I. 2014. Human capital accumulation and economic growth in malaysia investigating the long run nexus. Jurnal Ekonomi Malaysia 48(1):155–165.

Mohd Yahya Mohd Hussin, Fidlizan Muhammad, Mohd Fauzi Abu @ Hussin & Azila Abdul Razak. 2012. Education expenditure and economic growth: A causal analysis for Malaysia. Journal of Economics and Sustainable Development 3(7): 71–81.

Mendy, D., & Widodo, T. (2018). Do Education Levels Matter on Indonesian Economic Growth?. Economics and Sociology, 11(3), 133-146. doi:10.14254/2071-789X.2018/11-3/8

Mitchell, D. J. (2005). The impact of government spending on economic growth. Heritage Foundation, 1831, 1–18.

Manuel, J-G. (2018) Wagner’s Law: A Revision and a New Empirical Estimation. Review of Public Economics, 224 : 13-35.

Nurudeen A, Usman A. Government expenditure and economic growth in Nigeria, 1970-2008: A disaggregated analysis. Business and Economics Journal 2010; 4.

Self, S., & Grabowski, R. (2004). Does education at all levels cause growth? India, a case study. Economics of Education Review, 23(1), 47–55.

Siong, H. L. (2018) Applied Panel Data Analysis Short Panels. Universiti Putra Malaysia Press.

Sheehan, (1971). Economics of Education. London: Penguin Books.

Tom S. Clark and Drew A. Linzer (2015). Should I Use Fixed or Random Effects?. Political Science Research and Methods, 3, pp 399-408 doi:10.1017/psrm.2014.32

Downloads

Published

2020-04-26

How to Cite

Taasim, S. (2020). Does Government Expenditure in Education Cause Economic Growth: ASEAN-5 Perspective. International Journal of Human and Technology Interaction (IJHaTI), 4(1 April), 95–100. Retrieved from https://ijhati.utem.edu.my/ijhati/article/view/5765

Issue

Vol. 4 No. 1 April (2020)

Section

Humanities and Technology

License

The articles may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Authors alone are responsible for the contents of their articles. The journal owns the copyright of the articles. However, within the framework of Creative Commons (CC) copyright license, authors can use their published works in non-profit environments and share them on their own platforms on the internet. The publisher shall not be liable for any loss, actions, claims, proceedings, demand, or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with or arising out of the use of the research material. All authors are requested to disclose any actual or potential conflict of interest including any financial, personal or other relationships with other people or organizations regarding the submitted work.

The author (s) guarantees that the submitted article is his/her/their original research. All authors participating in this study assumed public responsibility and confirmed that the article was not submitted for another journal. All the articles in the article do not violate the existing copyright rules and intellectual property rights of any person or organization. The article meets the ethical standards applicable to the research discipline.

The authors cannot withdraw the article they have uploaded to IJHaTI journal and upload it to another journal without the approval of the journal editor.

Authors are responsible for obtaining written permission to include any images or artwork for which they do not hold copyright in their articles, or to adapt any such images or artwork for inclusion in their articles. The copyright