Public Education Expenditure and Economic Growth: A Critical Theoretical Reassessment

Résumé

This article offers a critical theoretical reassessment of the role of public education expenditure in the process of economic growth. Drawing on a structured analysis of the main schools of economic thought, ranging from classical and neoclassical theories to human capital theory, endogenous growth models, and contemporary institutional approaches, it highlights the gradual evolution of the place attributed to education in growth analysis, without leading to a unified theoretical consensus.

While classical and neoclassical approaches assign education an indirect or residual role, human capital theory conceptualizes it as a productive investment capable of generating economic returns. Endogenous growth models extend this perspective by incorporating education as an internal engine of growth through human capital externalities and innovation. However, these theoretical frameworks rely on strong assumptions regarding education system quality, institutional effectiveness, and the ability of economies to absorb the human capital produced.

The article argues that the impact of public education expenditure on economic growth is fundamentally conditional. It depends in particular on learning quality, education system governance, the alignment between education and labor market needs, and the structure of the productive sector. By moving beyond a purely quantitative interpretation of educational investment, this critical theoretical reassessment provides a clearer understanding of the heterogeneity of empirical findings in the literature and lays the groundwork for future empirical analyses that incorporate institutional and structural dimensions, especially in developing economies.

Classification JEL: I20; O40; O43

Paper type: Theoretical Research