Education has been an important determinant of economic growth in both developed and developing countries. In this study, by using city level data, the relationship between education expentitures and economic development has been searched for Marmara and Southeast Anatolian Regions in Turkey. Panel data approach has been used in order to analyze the relationship between total, primary and secondary level education expenditures and regional economic growth. All econometric results showed that total, primary and secondary education expenditure coefficients, consistant with previous economic studies, were statistically positive and significant. Besides that, for Southeastern region secondary education expenditures and for Marmara region primary education expenditures were found more important for economic growth
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