The relationship of higher education and economic development as social budget expenditure

The development of information society and information technology structures in the period from the 80's to the present has caused economic development to be associated with human capital and technology. The higher education sector has a determining role in the economic development process with its contribution to the production of knowledge and the creation of a well-equipped workforce. Deprivation of economic development is the source of many exclusion in societies, especially unemployment and poverty. Social budget implementations, which follow the risks and needs that arise in social structures and aim to find solutions to the economic development problem of dynamic social states, have to observe the requirements of the information society structure. The aim of the study is to determine the qualification of higher education as a part of the social budget in the context of the social budget items and the sources of financing for higher education R&D expenditures, taking into account the differences. In this context, the effect of higher education R&D expenditures on total factor productivity will be determined by econometric estimation methods according to the differences in funding sources. In econometric analysis, panel data analysis was applied between the years 2000-2017, with a data set of 27 countries in total. The econometric model is estimated by the cointegration and error-correction model. According to the results of the study, the increase in the share of public resources in higher education R&D expenditures does not effect the total factor productivity. Although it has a positive effect on total factor productivity in higher education R&D expenditures originating from the private sector and foreign funds, no statistical significance has been determined.