Education Expenditure and Student Learning Outcomes: A Cross-Country Analysis Using UNESCO SDG 4 Indicators

This study examines the relationship between public education expenditure and student learning outcomes using cross-country data from the UNESCO Sustainable Development Goal 4 (SDG 4) Global and Thematic Indicators (February 2026 release). Grounded in the Education Production Function framework, the analysis employs a quantitative, correlational design using the most recent available data across 118 countries. Multiple regression analysis was conducted to assess the effect of education expenditure (as a percentage of GDP) on learning outcomes, proxied by end-of-primary reading proficiency, while controlling for enrollment rate and pupil–teacher ratio. The results reveal that education expenditure is not a statistically significant predictor of learning outcomes. Similarly, enrollment rate and pupil–teacher ratio do not exhibit significant effects. The overall model explains only a minimal proportion of variance in learning outcomes, indicating limited explanatory power of the included variables. These findings suggest that financial investment alone is insufficient to explain cross-country differences in student learning and highlight the importance of considering broader system-level and contextual factors. The study contributes to the ongoing debate on the effectiveness of education financing and underscores the need for more nuanced, efficiency-oriented approaches to achieving SDG 4.