The effects of educational expenditures on economic growth (Case of Turkey)

There are many different criteria to compare economic growth between countries. These criteria may be based on monetary scale as well as social capital, particularly human capital. The most important factor in social capital is the share of education expenditures. For this reason, education expenditures constitute the basic structure of the impact on labor productivity. This study aims to determine how share of education in economic growth progresses and how it will impact. In this study, to explain the relationship between government expenditures on education and economic growth, in the context of Time Series Analysis, Vector Autoregressive Model was created and data from Turkey between 1997 and 2017 were used. The variables consist of Gross Domestic Product, Education Expenditures, Schooling Ratio, Education Index, Share of Research and Development Expenditures in Gross Domestic Product, Share of Public Expenditures in Gross Domestic Product, Share of Education Expenditures in Gross Domestic Product. This study concludes that the relationship between the GDP variable and the education expenditures variable is meaningful, in other words, changes in education expenditures are the cause of economic growth.