Description
This book is relevant to the contemporary circumstances of Bangladesh. The book employs new information about the nexus between public expenditure on education and the GDP of Bangladesh's economy. An econometric approach has been applied to investigate the relationship. The result shows a unidirectional causality between GDP and public expenditure on education, albeit public expenditure on education has a little favorable impact on GDP. Furthermore, with Impulse Response Functions and Variance Decomposition, the effect of growth on educational expenditure is larger than the reverse. Educational expenditure has been used as an instrument of counter-cyclical policy, determined by economic factors like GDP. This economic policy tool is pivotal because its effects are strong with persistence. Efforts can be made on the efficacy of public expenditure on education at a disaggregated level.