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Public education expenditure and economic growth: the educational quality threshold effect

Salwa Trabelsi ()
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Salwa Trabelsi: ESSEC Tunis - DEFI, University of Tunis-Tunisia

Region et Developpement, 2017, vol. 45, 99-112

Abstract: Using the threshold model (Hansen, 1996 and 2000), this paper analyses whether the growth effect of public education spending differs regarding the level of educational quality in each country. The results prove the existence of a threshold effect on the rela-tionship between education expenditure and economic performance. Specifically, spending on education present a positive effect on growth if the quality of education is better otherwise the effect is negative. This result is robust to the use of different measures of education quality of the PISA scores and also of their average as a measure of the performance of the whole labor force.

Keywords: Education expenditure; Education quality; Economic growth; Threshold effects (search for similar items in EconPapers)
JEL-codes: I22 I25 P46 O4 H52 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:tou:journl:v:45:y:2017:p:99-112