Educational Expenditures and Governance

This study analysis the correlation between expenditures on education which are categorized into different types and governance among 26 developed countries from 2002 to 2020 for which data is collected from World Bank Databases and World Governance Index (WGI). Data is analyzed by doing a full sample survey and sub sample analysis. Expenditures on education are categorized as government expenditures on education as a % of GDP and as a percentage of total government expenditures, government expenditures on primary, secondary and terteriy as a percentage of GDP. A positive and statistically significant correlation between expenditures on education and governance is found in full sample analysis. For most of the variables a strong positive correlation is observed for sub-samples of G7, European and Non- European Countries. Hence, it is clear that both educational expenditures and governance are correlated and are important determinants for a country’s good economic outcomes