The Impact of Education Expenditures on Economic Growth In Uganda: Evidence From Time Series Data

Abstract

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.