This paper attempts to examine the direction of causality between higher education expenditure and economic growth of Haryana for the period 1971-2013. Applying time series econometrics (Co-integration and Granger causality test), the hypothesis that there is no relationship between public expenditure on higher education and economic growth in Haryana was tested. The tests reveal that there is unidirectional causality between public higher education expenditure and economic growth; and the economic growth granger causes public expenditure on higher education and not vice-versa. Hence, the major policy implication of the study was that the Government of Haryana should focus more on expenditure on higher education for better human development which may contribute more to economic growth.
Volume 11 | 04-Special Issue
Pages: 1944-1950