This paper focuses on the long-run relationship and causality between government expenditure in education and economic growth in Indian economy for the time of 1980–2017. To test the causality vector error correction modelling (VECM) is applied. Findings from the cointegration test (Johansen) show that economic growth (GDP PC) is positively cointegrated with selected variables namely gross fixed capital formation (GCF) and government expenditure on education (EDU). The results of causality show that education expenditure granger causes GDP growth. Furthermore, this study has proven that education such as education variable plays an important role in influencing economic growth in India.
India, expenditure on education, economic growth, vector error correction model
