Assessing the impact of government spending on education on economic growth

Government spending on education is an essential component of social investments, influencing the future development of a country. Funding education contributes to the formation of high-quality human capital by fostering civic consciousness, critical thinking, and key professional skills, which in turn promotes economic development and strengthens social stability. Educated and skilled human capital drives productivity, innovation, and adaptation to economic changes, thereby impacting economic growth. At the same time, insufficient government spending on education significantly hinders the development of human capital necessary for economic growth. The objective of this study is to evaluate the impact of government spending on education on the economic growth of Kazakhstan from 2008 to 2023. The study also includes foreign direct investment and the overall unemployment rate as control variables. The results of the correlation analysis indicate a positive relationship between gross domestic product (GDP) and education spending, demonstrating that increased government spending on education fosters GDP growth through the development of human capital. The findings of the study confirm that government spending on education represents a strategic investment with a significant impact on economic growth through the development of human capital and the creation of an innovative and competitive economy. Sustainable investment in education for long-term economic development and global competitiveness should be a priority within public administration.