Government Spending in Education Division, Urbanization and Economic Escalation in Under-Developed and Developing Countries

Abstract

Education is vital for every country. Education leads to urbanization and economic growth and prosperity. In this research paper we are interested to see how developing country and under-developed countries are taking this important issue under the guidelines of United Nations and World Bank. Economic development is associated with education and urbanization. For this study researcher collected data from all developing and under-developed countries from 2011 to 2020. Our main dependent variable is GDP growth and for education we collected overall government expenditure on education sector and also divided them into three main components of primary, secondary and tertiary to analyze them separately. FDI, fertility rate, gross capital formation, government expenditure also considered in this study. Research result highlights that education sector expenditure not significant, hence government spending on education sector is not transforming their socio-economic issues due to mismanagement, lack of strategies and proper governance. In future governance may also be considered in study and split data of under-developed and developing countries in separate groups.