DOES EDUCATION INVESTMENT YIELD LONG-RUN RETURNS? EVIDENCE FROM TÜRKİYE

Authors : Pelin Sahin, Hakkı Kutay Bolkol

Pages : 97-111

Doi:10.54860/beyder.1799027

View : 217 | Download : 140

Publication Date : 2025-12-30

Article Type : Research Paper

Abstract :Reaping the benefits of educational investments takes time. In this paper, we investigate the long-run returns of public education investment for the Turkish economy by conducting a time-series analysis for the 1970-2021 period. The Autoregressive Distributed Lag (ARDL) approach is employed for empirical analysis due to its suitability for analyses with limited observations. This approach also enables us to separate the long- and short-run results, which is important for analyses including a long-time span. Analysis results report the existence of a long-run relationship. In the short-term, there are potential negative effects, signaling certain initial disruptions. However, in the long-term, the effect turns positive. Furthermore, in the case of any divergence from the long-run equilibrium, there is an adjustment process in the next period to restore equilibrium. Our findings highlight the importance of long-term commitment to education investment despite possible short-run trade-offs. Therefore, short-run disruptions can be seen as transitional costs in achieving long-term benefits.
Keywords : Eğitim Yatırımları, Zaman Serisi Analizi, ARDL Yaklaşımı, Türkiye

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