Effect of Education Expenditures on the Economic Growth in Turkey

Abstract

The main purpose of this study is to reveal the relationship between economic growth and education expenditures, which have the highest share in the Central Government Budget. In this context, the effects of education expenditures on economic growth in the period of 2006:Q1-2017:Q2 in Turkey were examined by using the Autoregressive Distributed Lag Model (ARDL) test from the time series methods. In the period analyzed according to the analysis results, a statistically significant relation was found between long term educational expenditures and economic growth. According to the findings obtained from the econometric analysis results, it is determined that the 1% increase in education expenditures will cause an increase of 0.86% in long term and 0,23% in short term on economic growth.