Government Spending on Tertiary Education, Knowledge, Technology, and Economic Growth

Tuck Cheong Tang () and Siow Li Lai
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Siow Li Lai: Universiti Malaya, Malaysia

Journal of Economic Development, 2022, vol. 47, issue 4, 99-122

Abstract: This study examines the role of government spending on tertiary education in promoting economic growth through knowledge creation and technology for panel data from 71 countries (1998-2014). This transmission channel is supported by Granger non-causality tests on high-income groups only. Both all panels (all countries) and upper-middle-income groups demonstrated direct causation from the government’s support of tertiary education to economic growth and vice versa. Additionally, the lower-middle-income group acknowledged the importance of government spending on tertiary education to stimulate output via interaction between knowledge and technology. These findings remain feasible with the inclusion of the governance variable. This study adds new findings and offers relevant policy insights, especially in the era of a knowledge-based economy.

Keywords: Economic Growth; Government Spending; Knowledge; Technology; Tertiary Education (search for similar items in EconPapers)
JEL-codes: C33 H52 I28 O11 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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