PUBLIC SPENDING ON EDUCATION AND ECONOMIC GROWTH : EMPIRICAL EVIDENCE FROM ODISHA
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Date
2017
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Uttar Pradesh Commerce Association
Abstract
Education in the literature has been considered to promote inclusive and sustainable economic growth and development of an economy. It has long been considered to enable individuals, especially women, to live and aspire to healthy, meaningful, creative and resilient lives by strengthening their voices in community, national and global affairs; to offer better livelihoods for those in the informal sector; and to prevent the transmission of poverty between generations. Thus, public expenditure on education can contribute to long-run development of an economy. It is in this context, this study was taken up to examine the dynamic causal linkages between government spending on education and real economic growth of Odisha over a sample period spanning from 1985-86 to 2014-15. It is found that both the variables have long-run equilibrium relationship among themselves. But the short-run dynamics infers the existence of unidirectional causation running from government investment in education to real economic growth of the state with a lag of 4 years. Thus, in Odisha the government's effort for achieving inclusive growth is justified. The state Government has been steadily moving towards achieving the national goal of universal education. There has been significant spatial and numerical expansion of elementary and secondary schools in the State over the years. Access and enrolment at the primary stage of education have reached near universal levels. The number
of out-of-school children has reduced significantly. The gender gap in elementary education has been narrowed and the percentage of children belonging to SCs and STs enrolled is almost proportionate to their population. State is also showing an increasing performance in higher education. However, the policy makers in the state should pave the way forward with efficient budgetary allocations for development of education and eventual growth of Odisha
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Mishra, S. K.., & Mishra, P.K., (2017): Public Spending on Education and Economic Growth: Empirical Evidence from Odisha, International Journal of Commerce and Social Sciences, 7(1), 1-10