Government expenditures on education and economic growth in the UK

Oyebowale, Adeola Y. and Babatunde, Simeon A. and EL Fakir, Adil (2025) Government expenditures on education and economic growth in the UK. Applied Economics Letters. pp. 1-7. ISSN 1350-4851

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Abstract

This paper investigates the impact of government expenditures on the main tiers of education on economic growth in the UK. Using annual data spanning from 1971 to 2019, we employ the vector autoregression (VAR) model to examine the relationship between the variables. Our findings indicate that the UK government's expenditure on secondary education has a positive and statistically significant impact on economic growth in the country. Further findings show a unidirectional causality running from economic growth to government expenditure on pre-primary education in the UK, while a bidirectional causality exists between government expenditure on secondary education and economic growth in the UK.

Item Type:	Article
Identification Number:	10.1080/13504851.2025.2496707
Dates:	Date Event 17 April 2025 Accepted 22 April 2025 Published Online
Uncontrolled Keywords:	secondary education, pre-preprimary education, economic growth, VAR
Subjects:	CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance
Divisions:	Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics
Depositing User:	Gemma Tonks
Date Deposited:	02 May 2025 14:17
Last Modified:	02 May 2025 14:17
URI:	https://www.open-access.bcu.ac.uk/id/eprint/16334

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