The Impact of the Public Education Expenditures on Regional Development in Turkey: Evidence from Static and Dynamic Panel Data

Köktaş, A. Murat and Apaydın, Şükrü and Pirçekli, Koray (2022): The Impact of the Public Education Expenditures on Regional Development in Turkey: Evidence from Static and Dynamic Panel Data. Published in: Journal of economic cooperation and development , Vol. 1, No. 43 (March 2022): pp. 247-268.

Abstract

This study aims to analyze the impact of public education expenditures on regional economic development in Turkey. For this purpose, we test the hypothesis that there is a strong relationship between education expenditures and economic growth/development using static and dynamic panel data (system GMM) methods. In the analysis, we use annual data on central government education expenditures and regional GDP per capita data for the period 2004– 2019 for 81 provinces at NUTS-III level. The findings of the study revealed a positive relationship between central government education expenditures and regional development. In other words, regional development accelerates if education expenditures increase. However, the magnitude of the effect is not as strong as is expressed in the hypothesis: a ten percent increase in education spending only increases economic development by 1.1 percent.

• Item Type: MPRA Paper
• Language: English
• Keywords: Public education expenditures, Regional development, Static panel data, Dynamic panel data.
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy

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