Does education expenditure lead or lag GDP ? Malaysian evidence

Muhammad Saifullah Azmi and Abul Masih

MPRA Paper from University Library of Munich, Germany

Abstract: This study focuses on the lead-lag relationship between education expenditure and GDP. Malaysia is taken as a case study. Given numerous initiatives and efforts introduced by the government to develop the education sector, it is interesting to investigate whether GDP drives education expenditure or the other way around. Based on rigorous methodology of standard time series techniques, in particular the Generalized variance decompositions (GVDC), the estimates tend to indicate that it is the GDP that is driving education expenditure and not the other way around. This finding is plausible and has strong policy implications for a developing country like Malaysia. Therefore, the budget and policies on education expenditure would be driven and determined by the overall economic performance embodied in GDP.

Keywords: GDP; Education expenditure; VECM; VDC; Malaysia (search for similar items in EconPapers)
JEL-codes: C22 C58 E44 I25 (search for similar items in EconPapers)
Date: 2018-05-16
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/108891/1/MPRA_paper_108891.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:108891

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().