Government expenditures on education and economic growth in the UK

This paper investigates the impact of government expenditures on the main tiers of education on economic growth in the UK. Using annual data spanning from 1971 to 2019, we employ the vector autoregression (VAR) model to examine the relationship between the variables. Our findings indicate that the UK government's expenditure on secondary education has a positive and statistically significant impact on economic growth in the country. Further findings show a unidirectional causality running from economic growth to government expenditure on pre-primary education in the UK, while a bidirectional causality exists between government expenditure on secondary education and economic growth in the UK.