 Education Expenditures and Growth: Is R&D the link?Danai Diakodimitriou, Alexandros Tsioutsios and Theofanis Papageorgiou Journal of Policy Modeling, 2025, vol. 47, issue 2, 322-337 Abstract: This article empirically investigates the relationship between education expenditures and economic growth. The study focuses on European countries with different models of state intervention, i.e. Germany, France, Greece, Italy, Spain, and Portugal, for the period 1996–2019, employing econometric techniques, such as adaptive LASSO and 3SLS model. The study finds that education expenditure significantly influences GDP per capita identifying the R&D expenditures as the main channel through which education expenditures influence economic growth. The findings are consistent throughout the sample. Also, we extend the existing literature, as the first research to empirically identify R&D expenditures as the key channel, leading to useful insights for policy makers, regarding economic growth. Specifically, it indicates that strategic funding allocation in education, particularly paired with R&D, should boost economic growth and resilience. This positive outcome leads to optimized allocation of public expenditures for innovation and competitiveness. Keywords: Education Expenditures; Economic Growth; Research and Development (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:47:y:2025:i:2:p:322-337 DOI: 10.1016/j.jpolmod.2025.01.003 Access Statistics for this article Journal of Policy Modeling is currently edited by A. M. Costa More articles in Journal of Policy Modeling from Elsevier |
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