engleski

The impact of education expenditures on growth in EU28 – a spatial econometric perspective

This paper analyses spatial effects of the impact of government expenditures on education on economic growth in EU28 countries during the period 2004-2013. Employing a novel econometric technique that allows for the estimation of spatial spillovers, our results indicate that government expenditures on education significantly and positively influence GDP growth. Moreover, indirect i.e. spillover effects are quite large suggesting that growth models should account for spatial interdependencies. Precisely, we find that education expenditures in one country affect GDP growth in neighbouring countries, meaning that these spillovers are geographical in nature. Moreover, we find that the degree of country interdependence varies according to average GDP per capita even if geographical distance is identical. Additionally, immigration is found to be an important channel of spatial transmission.

government spending on education, GDP growth, spatial panel analysis, spillover effects

nije evidentirano