CAUSAL RELATIONSHIP BETWEEN EDUCATION EXPENDITURES, ECONOMIC GROWTH, AND TAX REVENUES IN OECD COUNTRIES (1973–2021)

Authors : Selçuk Çağrı Esener, Ahmet Emre Biber

Pages : 1534-1564

Doi:10.17130/ijmeb.1638774

View : 159 | Download : 272

Publication Date : 2025-12-25

Article Type : Research Paper

Abstract :This study examines the interactions between education expenditures, tax policies and economic growth. The data of selected OECD countries for the period 1973-2021 are evaluated by Bootstrap panel Granger causality analysis. As a result of the analysis, while a bidirectional relationship between education expenditures and economic growth is found in some countries, this relationship is not found in Türkiye. In countries such as Ireland and Sweden, the effect of education expenditures on tax revenues is significant. The study also highlights the critical role of education expenditures on human capital accumulation, long-term growth and social welfare. In this context, it is emphasized that education expenditures should be increased and supported by effective tax policies for sustainable growth.
Keywords : Education Expenditures, Economic Growths, Tax Policies, Human Capital, Bootstrap Panel Granger Causality

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