Assessing the impact of public education expenditure on economic growth in Zimbabwe (1994 to 2024)

Author

Mubako, Palmer

Title

Assessing the impact of public education expenditure on economic growth in Zimbabwe (1994 to 2024)

Abstract

The connection between education spending and economic development remains an important issue, particularly in Zimbabwe where high literacy rates (around 90%) have not translated into consistent economic performance. This study examines the impact of government education spending on Zimbabwe’s economic growth from 1994 to 2024. The research analyses education expenditure as a percentage of GDP using the Cobb-Douglas production function approach. An ordinary least squares regression method was applied to examine the relationship between education spending and economic growth.
The data analysis showed a significant positive relationship between education expenditure and economic growth, which is consistent with findings from Chandra (2011) showing a positive and significant impact of government education spending on economic growth in Bangladesh. As recommended by international bodies, the study suggests that Zimbabwean policymakers increase annual education budget allocation to at least 20%. However, the key to achieving good results lies in directing funding towards areas of greatest impact, such as teacher training and support and classroom materials.

Date

JUNE 2025

Publisher

BUSE

Keywords

Economic development

Economic growth in Zimbabwe

Education expenditure

Supervisor

Mr Mandaza