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The Impact of Education Expenditures on Economic Growth In Uganda: Evidence From Time Series Data
- The Journal of Developing Areas
- Tennessee State University College of Business
- Volume 38, Number 1, Fall 2004
- pp. 123-133
- 10.1353/jda.2005.0015
- Article
- Additional Information
Does education promote economic growth? Empirical evidence is not conclusive on this question. This paper uses time-series technique to investigate the relationship between government education expenditure per worker and economic growth in Uganda during the period 1965-1999. The empirical results show that education expenditure per worker has a positive and significant impact on economic growth both in the long run and short run. The estimates of error correction model suggest that a 1% increase in average education expenditure per worker will lead to about 0.04% increase in output in the short run. The cointegration estimates show that a 1% increase in average education expenditure per worker will increase output by about 0.6% in the long run.