Public Expenditures in the Education and Health Sector and Their Impact on Economic Development – the Case of the Republic of Kosovo

The purpose of this paper is the analysis of public expenditures in the education and health sectors in relation to economic development in Kosovo. The work is carried out with the quantitative methodology, which is based on secondary data. The research covers a long-term period with the data from 2000 to 2023. In the analysis of the impact of public spending in the education and health sector on the economic growth of Kosovo, the Autoregressive Distributed Lag (ARDL) model was used, which deals with time series data, in a long-term period of 24 years. Findings from the research show that public spending supports the hypothesis that the policy of public spending on education positively affects the economic growth of Kosovo, emphasizing the importance of sustainable investments in educational initiatives for long-term economic development. However, these findings do not provide sufficient support for the hypothesis that the public health spending policy significantly contributes to the economic growth of Kosovo.