THE RELATIONSHIP BETWEEN PUBLIC EDUCATION EXPENDITURES AND WELFARE INDEX IN OECD COUNTRIES

Abstract

Education is one of the most important factors determining the increment of prosperity in a country. Therefore, expenditures on education are of great importance. In this study; it is aimed to investigate the relationship between the share of public education expenditures in GDP and the welfare index prepared by the British think tank “The Legatum Institute” in the period of 2007-2014 in the 31 OECD countries where the data is accessible. As a result of the analysis made by using the Panel Vector Autoregression method, causality relationship between the public expenditures made by the countries and the welfare index and the welfare education index has been put forward