UPM Institutional Repository

Linkages between education expenditure and economic growth: evidence from 'CHINDIA'


Kaur, Harpaljit and Abdul Hamid, Baharom and Habibullah, Muzafar Shah (2014) Linkages between education expenditure and economic growth: evidence from 'CHINDIA'. E3 Journal of Business Management and Economics, 5 (5). pp. 109-119. ISSN 2141-7482


This paper examines the relationship between education expenditure and economic growth in China and India by employing annual data from 1970 to 2005. This study utilizes multi econometric tools such as the Johansen-Juselius (1990) co-integration test, Ordinary Least Square (OLS) method, Dynamic Ordinary Least Square (DOLS), Vector Error Correction Model (VECM) as well as variance decomposition to obtain a robust and consistent result. The findings indicate that there exists a long run trending relationship between income level (Gross Domestic Product per capita (GDPpc) and education expenditure in both China and India. In the long run, a unidirectional causal relationship could be detected for both countries, running from income level to education expenditure for the case of China, while for the case of India education expenditure Granger causes income level. The results are robust and consistent across all methods.

Download File

Full text not available from this repository.

Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Keywords: Education expenditure; Economic growth; China; India; DOLS; VECM
Depositing User: Nurul Ainie Mokhtar
Date Deposited: 15 Dec 2015 00:21
Last Modified: 15 Dec 2015 00:21
URI: http://psasir.upm.edu.my/id/eprint/34388
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item