Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis

Mohamed Fathy Abdelgany; Sohair Rezk Mohamed; Mohamed Ibrahim Rashed

doi:doi:10.11648/j.ijefm.20241202.13

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Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis

Mohamed Fathy Abdelgany^*

, Sohair Rezk Mohamed, Mohamed Ibrahim Rashed

Published in International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 2)

Received: 12 March 2024 Accepted: 1 April 2024 Published: 12 April 2024

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Abstract

Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, these factors positively impact the standard of living, reflecting the interconnectedness between education, economic prosperity, and quality of life. This research comes to evaluate the impact of spending on education on the standard of living and then on economic growth in Egypt. The research is centered on employing a quantitative approach to assess the influence of education on economic growth. Additionally, it includes a descriptive analysis of variables and the presentation of results to provide a comprehensive understanding. The research functions the Auto Regressive Distributed Lag (ARDL) Bounds testing method in examining the cointegration from 1990 to 2021 based on annual time series data in Egypt. The research utilizes the numbers of classes in schools in the three educational stages (primary - preparatory - secondary) and the number of students enrolled in theoretical and practical colleges. The findings affirm that expenditure on education across all levels has a positive impact on economic growth in Egypt, albeit weak. This trend is attributed to the reduction in education spending relative to the growing number of students.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 2)
DOI	10.11648/j.ijefm.20241202.13
Page(s)	66-92
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Spending on Education, Investment on Education, Human Capital, Economic Growth, Egypt, ARDL

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APA Style

Abdelgany, M. F., Mohamed, S. R., Rashed, M. I. (2024). Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis . International Journal of Economics, Finance and Management Sciences, 12(2), 66-92. https://doi.org/10.11648/j.ijefm.20241202.13

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ACS Style

Abdelgany, M. F.; Mohamed, S. R.; Rashed, M. I. Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis . Int. J. Econ. Finance Manag. Sci. 2024, 12(2), 66-92. doi: 10.11648/j.ijefm.20241202.13

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AMA Style

Abdelgany MF, Mohamed SR, Rashed MI. Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis . Int J Econ Finance Manag Sci. 2024;12(2):66-92. doi: 10.11648/j.ijefm.20241202.13

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@article{10.11648/j.ijefm.20241202.13,
  author = {Mohamed Fathy Abdelgany and Sohair Rezk Mohamed and Mohamed Ibrahim Rashed},
  title = {Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis
},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {12},
  number = {2},
  pages = {66-92},
  doi = {10.11648/j.ijefm.20241202.13},
  url = {https://doi.org/10.11648/j.ijefm.20241202.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241202.13},
  abstract = {Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, these factors positively impact the standard of living, reflecting the interconnectedness between education, economic prosperity, and quality of life. This research comes to evaluate the impact of spending on education on the standard of living and then on economic growth in Egypt. The research is centered on employing a quantitative approach to assess the influence of education on economic growth. Additionally, it includes a descriptive analysis of variables and the presentation of results to provide a comprehensive understanding. The research functions the Auto Regressive Distributed Lag (ARDL) Bounds testing method in examining the cointegration from 1990 to 2021 based on annual time series data in Egypt. The research utilizes the numbers of classes in schools in the three educational stages (primary - preparatory - secondary) and the number of students enrolled in theoretical and practical colleges. The findings affirm that expenditure on education across all levels has a positive impact on economic growth in Egypt, albeit weak. This trend is attributed to the reduction in education spending relative to the growing number of students.
},
 year = {2024}
}

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TY  - JOUR
T1  - Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis

AU  - Mohamed Fathy Abdelgany
AU  - Sohair Rezk Mohamed
AU  - Mohamed Ibrahim Rashed
Y1  - 2024/04/12
PY  - 2024
N1  - https://doi.org/10.11648/j.ijefm.20241202.13
DO  - 10.11648/j.ijefm.20241202.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 66
EP  - 92
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20241202.13
AB  - Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, these factors positively impact the standard of living, reflecting the interconnectedness between education, economic prosperity, and quality of life. This research comes to evaluate the impact of spending on education on the standard of living and then on economic growth in Egypt. The research is centered on employing a quantitative approach to assess the influence of education on economic growth. Additionally, it includes a descriptive analysis of variables and the presentation of results to provide a comprehensive understanding. The research functions the Auto Regressive Distributed Lag (ARDL) Bounds testing method in examining the cointegration from 1990 to 2021 based on annual time series data in Egypt. The research utilizes the numbers of classes in schools in the three educational stages (primary - preparatory - secondary) and the number of students enrolled in theoretical and practical colleges. The findings affirm that expenditure on education across all levels has a positive impact on economic growth in Egypt, albeit weak. This trend is attributed to the reduction in education spending relative to the growing number of students.

VL  - 12
IS  - 2
ER  -

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Author Information

Mohamed Fathy Abdelgany

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni-Suef, Egypt

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http://orcid.org/0009-0001-4664-2661
Sohair Rezk Mohamed

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni-Suef, Egypt

Contact Email
Mohamed Ibrahim Rashed

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni-Suef, Egypt

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Plain Text BibTeX RIS

APA Style

Abdelgany, M. F., Mohamed, S. R., Rashed, M. I. (2024). Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis . International Journal of Economics, Finance and Management Sciences, 12(2), 66-92. https://doi.org/10.11648/j.ijefm.20241202.13

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ACS Style

Abdelgany, M. F.; Mohamed, S. R.; Rashed, M. I. Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis . Int. J. Econ. Finance Manag. Sci. 2024, 12(2), 66-92. doi: 10.11648/j.ijefm.20241202.13

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AMA Style

Abdelgany MF, Mohamed SR, Rashed MI. Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis . Int J Econ Finance Manag Sci. 2024;12(2):66-92. doi: 10.11648/j.ijefm.20241202.13

Copy | Download

@article{10.11648/j.ijefm.20241202.13,
  author = {Mohamed Fathy Abdelgany and Sohair Rezk Mohamed and Mohamed Ibrahim Rashed},
  title = {Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis
},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {12},
  number = {2},
  pages = {66-92},
  doi = {10.11648/j.ijefm.20241202.13},
  url = {https://doi.org/10.11648/j.ijefm.20241202.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241202.13},
  abstract = {Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, these factors positively impact the standard of living, reflecting the interconnectedness between education, economic prosperity, and quality of life. This research comes to evaluate the impact of spending on education on the standard of living and then on economic growth in Egypt. The research is centered on employing a quantitative approach to assess the influence of education on economic growth. Additionally, it includes a descriptive analysis of variables and the presentation of results to provide a comprehensive understanding. The research functions the Auto Regressive Distributed Lag (ARDL) Bounds testing method in examining the cointegration from 1990 to 2021 based on annual time series data in Egypt. The research utilizes the numbers of classes in schools in the three educational stages (primary - preparatory - secondary) and the number of students enrolled in theoretical and practical colleges. The findings affirm that expenditure on education across all levels has a positive impact on economic growth in Egypt, albeit weak. This trend is attributed to the reduction in education spending relative to the growing number of students.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis

AU  - Mohamed Fathy Abdelgany
AU  - Sohair Rezk Mohamed
AU  - Mohamed Ibrahim Rashed
Y1  - 2024/04/12
PY  - 2024
N1  - https://doi.org/10.11648/j.ijefm.20241202.13
DO  - 10.11648/j.ijefm.20241202.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 66
EP  - 92
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20241202.13
AB  - Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, these factors positively impact the standard of living, reflecting the interconnectedness between education, economic prosperity, and quality of life. This research comes to evaluate the impact of spending on education on the standard of living and then on economic growth in Egypt. The research is centered on employing a quantitative approach to assess the influence of education on economic growth. Additionally, it includes a descriptive analysis of variables and the presentation of results to provide a comprehensive understanding. The research functions the Auto Regressive Distributed Lag (ARDL) Bounds testing method in examining the cointegration from 1990 to 2021 based on annual time series data in Egypt. The research utilizes the numbers of classes in schools in the three educational stages (primary - preparatory - secondary) and the number of students enrolled in theoretical and practical colleges. The findings affirm that expenditure on education across all levels has a positive impact on economic growth in Egypt, albeit weak. This trend is attributed to the reduction in education spending relative to the growing number of students.

VL  - 12
IS  - 2
ER  -

Copy | Download