Abstract
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.
growth for India has been inconsistent.
| Original language | English |
|---|---|
| Publisher | University of Dundee |
| Number of pages | 14 |
| Publication status | Published - Dec 2012 |
Publication series
| Name | Dundee Discussion Papers in Economics |
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| Publisher | University of Dundee |
| No. | 273 |
| ISSN (Print) | 1473-236X |
Keywords
- Public education expenditure
- economic growth
- trade openness
- India
