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

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 Ordi...

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Main Authors: Kaur, Harpaljit, Abdul Hamid, Baharom, Habibullah, Muzafar Shah
Format: Article
Published: 2014
Online Access:http://psasir.upm.edu.my/id/eprint/34388/
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author Kaur, Harpaljit
Abdul Hamid, Baharom
Habibullah, Muzafar Shah
author_facet Kaur, Harpaljit
Abdul Hamid, Baharom
Habibullah, Muzafar Shah
author_sort Kaur, Harpaljit
building UPM Institutional Repository
collection Online Access
description 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.
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spelling upm-343882015-12-15T00:21:04Z http://psasir.upm.edu.my/id/eprint/34388/ Linkages between education expenditure and economic growth: evidence from 'CHINDIA' Kaur, Harpaljit Abdul Hamid, Baharom Habibullah, Muzafar Shah 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. 2014-08 Article PeerReviewed 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 http://www.e3journals.org/abstracts.php?artID=423&jid=1
spellingShingle Kaur, Harpaljit
Abdul Hamid, Baharom
Habibullah, Muzafar Shah
Linkages between education expenditure and economic growth: evidence from 'CHINDIA'
title Linkages between education expenditure and economic growth: evidence from 'CHINDIA'
title_full Linkages between education expenditure and economic growth: evidence from 'CHINDIA'
title_fullStr Linkages between education expenditure and economic growth: evidence from 'CHINDIA'
title_full_unstemmed Linkages between education expenditure and economic growth: evidence from 'CHINDIA'
title_short Linkages between education expenditure and economic growth: evidence from 'CHINDIA'
title_sort linkages between education expenditure and economic growth: evidence from 'chindia'
url http://psasir.upm.edu.my/id/eprint/34388/
http://psasir.upm.edu.my/id/eprint/34388/