Impact of Education and I + D Expenditure on Economic Growth in Latin America (2006–2019)
DOI:
https://doi.org/10.47606/ACVEN/PH0405Keywords:
education, I D, economic growth, Latin America, panel dataAbstract
This study examines the relationship between public expenditure on education, research and development (I &D) investment, and economic growth in twelve Latin American countries from 2006 to 2019. Static (fixed and random effects) and dynamic panel data models were applied using the Generalized Method of Moments (GMM) approach developed by Arellano-Bond and Arellano-Bover, with data obtained from the World Bank, RICYT, and Datosmacro. Results indicate that gross capital formation, education spending, and tax revenue exert a positive and significant effect on GDP growth, while R&D expenditure and the number of firms have a negative impact. The robustness of the model was verified through Hansen, Sargan, and AR(1)/AR(2) tests, confirming its validity. Findings suggest that education investment fosters economic growth in the region, but targeted policies are needed to enhance the efficiency and returns of R&D spending.
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Copyright (c) 2025 José Antonio Arévalo-Tuesta, Alberto Arévalo-Tuesta, Irvin Stid Delgado-Farfán, Víctor Raúl Arévalo-Barriga, Lilia Rodas-Camacho, Christian Gutiérrez-Romero
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