Abstract

• The main purpose of this paper is to explore the impact of education expenditure on economic growth (GDP) in Myanmar. Using annual data for the period 1980 -2022, the analysis is done using time series econometrics methods such as Unit root (ADF) test, co-integration (Engle and Granger), Error Correction Model (ECM) and Granger causality test. The results of Augmented Dickey-Fuller test (ADF) indicates that all the variables are stationary at first difference, I(1). The study finds that cointegration tests confirm a stable, long-term relationship between the variables, indicating that changes in education spending are significantly associated with economic growth over time. The ECM results further demonstrate a significant positive impact of education expenditure on economic growth in both the short and long run. Granger causality tests reveal a bidirectional causal relationship, suggesting that not only does education expenditure influence economic growth, but economic growth also predicts education spending. These results can also underscore the critical role of educational investment in fostering economic growth and suggest that policies aimed at enhancing education funding could have substantial long-term benefits for Myanmar's economic development.