THE IMPACT OF GOVERNMENT EDUCATIONAL EXPENDITURE POLICY AND SCHOOL ENROLMENT ON ECONOMIC GROWTH IN GHANA (1970-2017)

Abstract

This study examines the impact of government educational expenditure and school enrolment on economic growth in Ghana over the period 1970-2017. The research employs the autoregressive distributed lag (ARDL) technique based on the results of the Phillips-Perron unit root test. The findings show that government educational expenditure within the period (1970-2017) has an insignificant effect on economic growth in both the long-run and short-term. It is also revealed that while primary and secondary school enrolment rates positively and significantly drive growth in both time periods, the effect of tertiary education on economic growth is negative and significant in the long-run. The article recommends that proper mechanisms should be put in place to deal with embezzlement of funds in the educational sector. It also recommends construction of policies that will promote free equitable access to quality secondary education that will ensure education for all in Ghana including individuals from low-income families and involvement of tertiary students in practical programmes that will ensure the acquisition of innovative skills hence appropriate optimisation of human capital trained from the Ghanaian education system. This will enhance proper economic returns from the education system