Document Type : Research Paper


lorestan university


The right to education, especially basic education, has been recognized as a fundamental right for all citizens. Efforts to achieve universal education and improve learning outcomes lead to an increase in resources dedicated to education. Basic education should become one of the largest components of government spending on education in countries. The prioritization of the basic education sector in the budget allocation in the last decade has led to the expansion of access to education at this stage and improved enrollment in schools. The aim of this study is to empirically investigate and analyze the determinants of public spending in education in Iran using time series data from 1979 to 2019 and Autoregressive Distributed Lag (ARDL) and Error Correction Model (ECM). In this regard, it is assumed that educational costs are determined by multidimensional determinants. Therefore, a number of variables related to the socio-economic concept used in this study. Empirical findings from this study identified real GDP growth rate, unemployment rate, inflation rate, tax revenue, government debt, working-age population, and elderly population as long-term determinants of public education expenditures. The findings from the results of the ARDL marginal test support the Keynesian countercyclical theory, which implies a negative relationship between economic growth and public education expenditures. The short-term analysis of the model showed that fluctuations in education expenditure are sensitive to real GDP growth rate, unemployment rate, population age less than 15 years, inflation rate and population over 64 years. Therefore, the government can consider implementing financial reforms that include a more responsive and participatory education spending policy to improve the efficiency of education allocation.


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