Public Education Expenditure and Its Impact on Human Resource Development in India: An Empirical Analysis

Abstract

Societal and global advancement increasingly depends upon research, invention, innovation and adaptation; all of these are products of educated mind. Education is public good in LDCs and need Government involvement to function effectively. National Education Policies of India in 1968, 1986 and 1992 (revised) have recommended 6% of GDP to spend on education which unfortunately was on an average 3.77% in last one and half decade. This insufficient funding can be considered as one of the factors for India’s low ranking in terms of Human Development Index. Descriptive and analytical methods are used to study the relationship between Public Education expenditure and Human Resource Development of India by using the secondary data collected through the reliable sources like Ministry of human resource development and Human Development reports published by UNDP. To analyse the relationship between spending by the Government on education and improvement in quality of Human resource, Granger Causality Test is applied. The results of the study show the influence of Public education expenditure on Human Resource Development in India.

Keywords

Public education expenditure Human Resource Development Human Development Index Education Index Granger Causality Test

Get full access to this article

View all access options for this article.

References

Becker

G. S.

(1962). Investment in human capital: A theoretical analysis. Journal of Political Economy , 70(5, Part 2), 9–49.

Becker

G. S.

Murphy

K. M.

Tamura

(1990). Human capital, fertility, and economic growth. Journal of Political Economy , 98(5, Part 2), S12–S37.

Bhatia

Dash

M. K.

(2013). A demand of value based higher education system in India: A comparative study. Journal of Public Administration and Policy Research , 3(5), 156.

Blundell

Dearden

Meghir

Sianesi

(1999). Human capital investment: The returns from education and training to the individual, the firm and the economy. Fiscal Studies , 20(1), 1–23.

Cho

McLean

G. N.

(2004). What we discovered about NHRD and what it means for HRD. Advances in Developing Human Resources , 6(3), 382–393.

Delors

(1996). Learning: The Treasure Within. (Delor’s Report-1996). Retrieved from https://www.cukashmir.ac.in/.../Delor’s%20Report-1996%20-%20Presentation%20by...

Douglass

J. A.

(2010). Higher education budgets and the global recession: Tracking varied national responses and their consequences (Research & Occasional Paper Series: CSHE. 4.10). Berkely, CA: Center for Studies in Higher Education, University of California.

Dukkipati

(2010). Higher education in India: Sustaining long-term growth. South Asia Monitor , 141(1).

Education Commission of India. (1966). Report of the Education Commission, 1964–66: Education & national development (Vol. 2). New Delhi: Ministry of Education, Government of India.

10.

Dastidar

Ghosh

Mohan

S. Chatterji

(2013). The relationship between public education expenditure and economic growth: The case of India . Retrieved from http://hdl.handle.net/10943/435

11.

Loyalka

Rozelle

(2017). Human capital and China’s future growth. Journal of Economic Perspectives , 31(1), 25–48.

12.

Lucas

R. E.

(1988). On the mechanics of economic development. Journal of Monetary Economics , 22(1), 3–42.

13.

Mallick

Das

P. K.

Pradhan

K. C.

(2016). Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis. Theoretical & Applied Economics , 23(2), 173–186.

14.

Marshall

(1930). The pure theory of foreign trade: The pure theory of domestic values . Clifton, NJ: Augustus M Kelley Pubs.

15.

Mehdi

Chaudhry

(2015). Human capital potential of India’s future workforce (No. 7846). New Delhi: Indian Council for Research on International Economic Relations (ICRIER).

16.

Ministry of Finanace (2015–2016). Economic Survey (2015–16). Retrieved from https://www.indiabudget.gov.in/budget2016-2017/es2015-16/echapter-vol1.pdf

17.

Muritala

Taiwo

(2011). Government expenditure and economic development: Empirical evidence from Nigeria. European Journal of Business and Management , 3(9), 18–28.

18.

Musai

Mehrara

Fakhr

S. G.

(2011). Relationship between education and economic growth (international comparison). European Journal of Economics, Finance and Administrative Sciences , 29, 26–32.

19.

Pissarides

C. A.

(2000). Human capital and growth: A synthesis report. (OECD Development Centre, Technical Papers No. 168). Paris: OECD.

20.

Ramamurti Report on Education in Retrospect. (1991). Retrieved from www.epw.in/journal/1991/26/special.../ramamurti-report-education-retrospect.html

21.

Ranis

Stewart

Ramirez

(2000). Economic growth and human development. World Development , 28(2), 197–219.

22.

Samuelson

P. A.

(1954). The pure theory of public expenditure. The Review of Economics and Statistics , 36(4), 387–389.

23.

Schultz

T. W.

(1960). Capital formation by education. Journal of Political Economy , 68(6), 571–583.

24.

Shi Mei-ling. (2014). Empirical analysis on the relationship between human capital investment and economic growth in rural areas: Based on the data of Henan. Journal of Chemical and Pharmaceutical Research , 6(3), 378–382.

25.

Smith

(1776). An inquiry into the nature and causes of the wealth of nations . London, UK: George Routledge and Sons.

26.

UNDP. (2015). Human Development Report (HDR) . Retrieved from hdr.undp.org/sites/default/files/2015_human_development_report.pdf

27.

UNESCO. (2015). EFA global monitoring report. Retrieved from unesdoc.unesco.org/images/0023/002322/232205e.pdf

28.

Unni

Sarkar

, (2012). Education and employment: Do the education level/skills of our youth match relevant jobs? (Working Paper No. 232). Anand: Institute of Rural Management Anand, India.