Title: How does economic expansion react to educational expenditure, financial development, and financial integration? A nonlinear Granger causality and quantile regression analysis in an Asian perspective

Authors: Amritkant Mishra; Amba Agarwal

Addresses: Department of Humanities and Social Science, Jaypee Institute of Information Technology, A-10, Sector-62, Noida, 201 309, India ' Department of Humanities and Social Science, Jaypee Institute of Information Technology, A-10, Sector-62, Noida, 201 309, India

Abstract: This empirical analysis aspires to adequately investigate the causal effect of financial integration, educational expenditure and financial development on economic growth, by exerting the nonlinear Granger-causality approach. On another hand, it additionally strives to uncover the heterogeneous effect of financial integration, academic expenditure and financial development on the economic growth of nine pertinent Asian economies by employing quantile regression techniques. The consequence of nonlinear Granger causality analysis demonstrates that the nonlinear causality exists from educational spending towards the economic growth in the countries such as Bangladesh, India, China, and Thailand. While on the other hand, no such causality found in civilised nations like Australia, Japan, Korea, Malaysia, and Singapore. The empirical outcome also manifests that if monetary integration, financial development, and educational expenditure happen simultaneously then it leads to economic growth in Bangladesh, China, India, Japan, Malaysia, and Thailand. Additionally the outcome of quantile regression documents that education sector outlay enhances the economic growth of underdeveloped or developing countries while it does not demonstrate a significant impact on the economic growth of the highly developed nations.

Keywords: educational expenditure; financial development; economic growth; quantile regression; nonlinear causality.

DOI: 10.1504/IJEED.2019.100667

International Journal of Education Economics and Development, 2019 Vol.10 No.3, pp.276 - 293

Received: 08 Sep 2018
Accepted: 14 Dec 2018
Published online: 06 Jul 2019 *

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