Building strong educational infrastructure and increasing the human
capital potential is one of the major goals in public policy decision making
process. This issue is much more crucial for resource-rich economies to
reach sustainable development in the long-run. In this context, public
expenditure on education is the most important source. This paper
investigates long-run impact of public expenditures on education over
non-oil GDP in Azerbaijan for 2000Q1-2017Q3 by employing ARDLBT
approach to cointegration. Empirical results displays existence of long-run association. The impact of public expenditures on education over
non-oil GDP is positive, economically and statistically significant in the
long-run. To achieve diversified economy with strong non-oil sector,
Azerbaijan should continue to invest to human capital development and
public expenditures on education should be at the focus while allocating
budget resources.
Citation:
Jabrayilova, M., & Aliyeva, A. (2018). Modelling the return to public expenditures on education: the case of Azerbaijan. ASERC Journal of Socio-Economic Studies, 1(1), 60-72. DOI:10.30546/2663-7251.1.1.60