Impact of public spending on education on GDP per capita growth in Morocco: A stochastic econometric approach

Abstract

between 1989 and 2020. This study is based on the Auto-Regressive Distributed Lagged Model Approach (ARDL) proposed by Pesaran et al. The empirical estimates gave us interesting results. In the short term, Morocco's public spending on education is positively correlated with GDP per capita. On the other hand, public spending on education contributes to increasing the country's GDP per capita in the long term. To answer our problem, we will specify the main explanatory variables of this growth in the light of the hypotheses deduced from the literature review on this subject.

Some authors emphasize the correlation between certain determinants such as gross physical capital formation (GFCF), on the other hand, the others have human capital (higher education), public spending on executive training, research, and development. Using stochastic econometric modeling, we will use the data relating to these variables to test the assumptions adopted.

As an illustration, Solow and other post-Keynesian growth theorists use the Cobb-Douglas function at the macroeconomic level to predict GDP per capita growth. Consequently, the validation of these hypotheses would legitimize the stochastic econometric model which could have very significant implications in managerial strategies in the case of Morocco.

JEL Classification : A20, E24, M50, O40.

Paper type : Empirical research.