Quality and Effectiveness of Public Spending on Education in Pakistan

Abstract

The effect of government spending on economic growth and development is an extensively discussed policy issue both theoretically and empirically especially in the context of developing countries. This is largely because many developing economies not only experience large budget deficits amid low level of economic development but also there is significant government involvement in the economy and less control over government expenditures and revenues (Morrison (1982)). Endogenous growth theories advocate the fact that fiscal policy plays an important role in economic development as it affects private sector positively by providing enhanced infrastructure and skilled human capital (Aschauer (1989), Easterly and Rebelo (1993)).