INVESTMENT IN PRIMARY, SECONDARY, AND HIGHER EDUCATION AND THE EFFECTS ON ECONOMIC GROWTH

Katarina R. I. Keller

Contemporary Economic Policy, 2006, vol. 24, issue 1, 18-34

Abstract: This author analyzes the effects of primary, secondary, and higher education on per capita growth for flow measures of education: enrollment rates, public expenditures, and expenditures per student. Worldwide panels since 1960 and developing and developed country subsamples are examined. Secondary and higher education enrollment rates and expenditures per student in lower education stages and primary overall demonstrate significance. Public higher education expenditures overall and per student are disadvantageous. This study recommends raising enrollment rates and prioritizing public expenditures toward lower education stages, while ensuring that expenditures per student keep up with increases in student cohorts. Indirect effects of education are explored. (JEL O11, H52, I28)

Date: 2006
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