This study examines the effect of the quantity and quality of education on economic growth. Using a number of proxy variables for the quantity and quality of education in a cross section of low and medium income countries, this study finds that education quantity when measured by enrolment ratios, unambiguously influences economic growth. The effect of government expenditure on economic growth is largely indirect through its impact on improved education quality.
Cooray, A. V. (2009). The role of education in economic growth. Proceedings of the 2009 Australian Conference of Economists (pp. 1-27). Adelaide, Australia: South Australian Branch of the Economic Society of Australia.