Main Article Content

Katerina Shapkova Kocevska


In this paper, we studied the impact of public education expenditure on GDP per capita in North Macedonia from 1991 to 2020. The main questions we examined were: 1) What is the relationship between public education expenditure and GDP per capita in the country in the short run?; 2) Does a long-term relationship between the aforementioned variables exist?; and 3) What are the policy implications? This research was based on the Auto-Regressive Distributed Lag (ARDL) model, originally developed by Pesaran et al. (2001). The empirical estimations produced interesting findings. In the short run, the relationship between public spending on education and GDP per capita in North Macedonia was negative and statistically significant. The long-term relationship between the variables remained negative but statistically insignificant. These results were robust and consistent with results from earlier empirical studies. The results suggested that government expenditures on education did not contribute to economic growth in North Macedonia in the analyzed period, ceteris paribus. From a public policy standpoint, we concluded that intervention in the education system's financing is necessary to facilitate the transformation of education expenditures into productive human capital and enhance the nation's economic development. 


Download data is not yet available.

Article Details

How to Cite
Shapkova Kocevska, K. . (2023). PUBLIC EXPENDITURE ON EDUCATION AND ECONOMIC GROWTH: EVIDENCE FROM NORTH MACEDONIA. Journal of Liberty and International Affairs, 9(1), 22-34.
Author Biography

Katerina Shapkova Kocevska, Ss. Cyril and Methodius University in Skopje, Iustinianus Primus Faculty of Law - Skopje, Republic of North Macedonia

Katerina Shapkova Kocevska is an associate professor at the Institute of Business Law and Economic Sciences at the Iustinianus Primus Faculty of Law, University Ss. Cyril and Methodius in Skopje. She has been teaching several undergraduate and graduate courses, including Economics, Political Economy, Contemporary Economic Theories, Managerial Finances, Public Sector Economics, and Public Finances. She got a PhD in economics from the University of Ss. Cyril and Methodius in Skopje. Her research interests include institutional economics and the economics of education. Katerina has co-authored two books and written many scholarly articles and publications. So far, she has been engaged in many national projects and has participated in many international and domestic workshops and conferences. In 2012, Katerina was awarded Junior Faculty Development Program (JFDP) fellowship and got placement at Florida State University, USA. She was a Society for Institutional and Organizational Economics member.