The Role of Education in Driving Economic Growth in Lebanon

Abstract

This study explores the relationship between government expenditure on education and economic growth in Lebanon over the period 1993–2023. It aims to assess whether public investment in education contributes positively to economic development.The research employs a quantitative approach using time-series data obtained from the World Bank. The relationship between government spending on education and GDP growth was analysed using the Stata software to estimate the model and test the significance of key variables.Contrary to prevailing economic theories, the results indicate a negative relationship between government spending on education and economic growth in Lebanon. This finding challenges the conventional belief that investment in education necessarily fosters growth, highlighting the importance of examining the quality and efficiency of such spending. The inverse relationship suggests that education spending in Lebanon may suffer from inefficiencies, poor allocation, or systemic issues that limit its positive impact on growth. This underscores the need for structural reforms in the sector.The study recommends a comprehensive reform strategy that includes better governance of public funds, administrative reform, increased transparency, improved teacher recruitment and training, and innovation in curricula. Such changes are crucial to enhancing the effectiveness of educational investment and its contribution to economic growth.