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Government bias in education, schooling attainment, and long-run growth

Bhattarai, Keshab; Basu, Parantap

Authors

Parantap Basu



Abstract

A surprising cross-country stylized fact is that higher public spending on education tends to lower the long-run growth rate of per capita GDP and the returns to schooling. This is contrary to the conventional wisdom that education is a major driver of growth. In this article, we revisit this issue and try to understand these puzzling facts in terms of an endogenous growth model. Our cross-country calibration of the growth model predicts that countries with a greater government involvement in education experience lower schooling efforts and lower growth.

Citation

Bhattarai, K., & Basu, P. (2012). Government bias in education, schooling attainment, and long-run growth. Southern Economic Journal, 79(1), 127-143. https://doi.org/10.4284/0038-4038-79.1.127

Journal Article Type Article
Acceptance Date Oct 1, 2011
Online Publication Date Jul 1, 2012
Publication Date Jul 1, 2012
Deposit Date Nov 13, 2014
Journal Southern Economic Journal
Print ISSN 0038-4038
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 79
Issue 1
Pages 127-143
DOI https://doi.org/10.4284/0038-4038-79.1.127
Keywords Economics and Econometrics
Public URL https://hull-repository.worktribe.com/output/468246
Contract Date Nov 13, 2014