Educational expenditure constitutes a very important component of social expenditure of a nation. General government expenditure on education (current, capital, and transfers) is expressed as a percentage of GDP. Expenditure on education is an investment that can foster economic growth, enhance productivity, contribute to personal and social development and reduce social inequality. The proportion of total financial resources devoted to education is one of the key choices made by governments, enterprises, students and their families. The indicator covers expenditure on schools, universities and other public and private institutions delivering or supporting educational services. Expenditure on institutions is not limited to expenditure on instruction services but includes public and private expenditure on ancillary services for students and their families, where these services are provided through educational institutions. At the tertiary level, spending on research and development can also be significant and is included in this indicator, to the extent that the research is performed by educational institutions. Public expenditure includes both direct expenditure on educational institutions and educational-related public subsidies to households administered by educational institutions. Private expenditure is recorded net of these public subsidies attributable to educational institutions; it also excludes expenditure made outside educational institutions.
Published in Chapter:
Relationship Between Military Expenditure, Economic Growth, and Social Expenditure in India, China, and Bangladesh
Rajib Bhattacharyya (Hooghly Mohsin College, India)
Copyright: © 2018
|Pages: 22
DOI: 10.4018/978-1-5225-4778-5.ch016
Abstract
One of the most debated phenomena of recent times in the global scenario is whether there really exists a true opportunity cost of a sequential increase in global military expenditure across the world. The existing literature on the relationship between military expenditure and economic growth confirms that three kinds of linkages may be plausible: positive, negative, and no significant linkages. The chapter focuses on contradictions and conflicts between military expenditure and social expenditure such as health and education. The chapter also attempts to examine both the long-run and short-run relationship between defense expenditure (DE), health expenditure (HE), educational expenditure (EE), and economic growth (changes in GDP). Here the autoregressive distributed lag approach (ARDL) and error correction model (ECM) technique have been applied to examine the long- and short-run causality among the variables. The study observes that there exists no significant long-term relationship between economic growth, defense expenditure, health expenditure, and educational expenditure in India and China, but Bangladesh does have one.