Abstract:

This study examines the relationship between economic growth and education in Jordan using the vector error correction model (VECM) and other necessary tests during the period 1960-2016. The variables that data used are GDP per capita, gross enrollment rate, government expenditures on education, literacy rate, life expectation, fertility rate, inflation, and openness ratio. Our findings indicate that There is a negative relationship between economic growth and gross enrollment rate (GER), and there is a negative relationship between economic growth and fertility rate (FR). On the other hand, the study finds that there is a positive relationship between economic growth and government expenditures on education (EDX), literacy rate (LR), life expectancy (LE), inflation (IN) and openness ratio (OR). Keywords: Education, Economic Growth, Government Expenditures on Education, Unit Root Tests, Cointegration, Vector Error Correction Model (VECM).

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