The effects of education expenditures on Turkey?s economic growth

Education has been an important determinant of economic growth in both developed and developing countries. In economic literature, investment in human capital in the form of education has been positive effect on the long-term economic growth of many countries.In this study, by using city level data, relationship was examined between educational expenditures and economic growth, between 1990-2001 in Turkey. Beside overall Turkey?s group, four more groups was generated; cities higher and lower per capita GDP than country average, Marmara region and Southeastern Anatolia region. Panel data approach was used in order to analyze the relationship between total, primary and secondary level education expenditures and regional economic growth.All econometric results showed that total, primary and secondary education expenditure coefficients, consistant with previous economic studies, were statistically positive and significant. For summary, it was observed that educated individuals in Turkey have positive impact on economic growth by their increased productivity.