The Impact of Public Education Expenditure on Economic Growth in Kosova: A Quantitative Analysis

Zogjani, Jeton and Kovaci-Uruci, Fife and Zogjani, Agon (2024): The Impact of Public Education Expenditure on Economic Growth in Kosova: A Quantitative Analysis.

Abstract

This paper analyses the impact and correlation of different education indicators on the economic growth of Kosova from 2012 to 2022. Using time-series data, this paper applies the Cobb-Douglas production function as a measurement model. The main findings demonstrate a mixed impact on growth, where public expenditure on education as a percentage of government expenditure contributed a solid positive impact and statistically significant effect, while the gender parity index exhibited a less significant positive impact on growth. In contrast, only public expenditure on education as a percentage of GDP showed a negative impact, while other examined variables have not displayed a significant positive impact on the economic growth of Kosova. These findings suggest that the effective allocation of education expenditures and the alignment of these expenditures with broader economic objectives are crucial for maximizing growth potential and fostering economic development in Kosova. In terms of policy implications, institutions in Kosova and other relevant policymakers should prioritize enhancing the quality of the education system and adopting policies that not only increase expenditures for education but also improve specific aspects. These policies enable the education system of Kosova to become a significant contributor to economic performance and sustainable long-term growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: education system; human capital development; investment(s) in education; Kosova; labour market; public expenditure on education
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; H - Public Economics > H5 - National Government Expenditures and Related Policies > H52 - Government Expenditures and Education; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I24 - Education and Inequality; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I25 - Education and Economic Development; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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