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Arab Journal of Administration المجلة العربية للإدارة

Abstract

The Study targeted clarifies the Type and Extent of the Relationship between Spending on Education and Economic Growth in Egypt, during the period from 1990-1991 to 2013-2014. The Study assumed a Causal Relationship between Spending on Education and Economic Growth through the Gross Domestic Product Index. Therefore, the Study focused on the Theoretical Framework in a Statement on the Relationship between Spending on Education and Growth in Economic Thought, as well as some Applied Studies on this Subject and the most important Determinants of Spending on Education.The results of the Correlation in Evolution of the Spending on Education and Gross Domestic Product (GDP) by dividing the study period into two subgroups, that higher average Spending on Education during the first period accompanied by an increase in the averages of each of: Public Revenues؛ the number listed in Education and the proportion of the volume of Employment to the Population; hence, an increase in the average GDP of 271689.9 billion pounds in the first period to 485990.7 billion pounds in the second period, an increase of 214300.8 pounds, by an estimated 78.8 percent. Which means that it should be maintained Spending on Education high because its importance in raising the rate of Economic Growth, as the increase of 2.6 percent in average Spending on Education owner size increase of 78.8 percent in the average GDP.The results of the Statistical Study using a linear Regression model, which measures the impact of Spending on Education with other variables of the study on the GDP in one direction that when increase Spending on Education by 1 percent increased GDP by 56 percent, this means that the country's Economic Growth is linked to its ability to prepare and Human Resource Development and Public Investment that is not accompanied by Investment in Education has less impact in raising the rate of Economic Growth. The Study in which Applied also addressed the Correlation in the time evolution the Spending on Education and Economic Growth in Egypt, as well as display Statistical analysis of the Relationship between Spending on Education and GDP has the Statistical analysis proved a Causal Relationship between them through Causality Granger Test, which is consistent with the Study Hypothesis.

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