Globalization and Education Expenditures: Evidence from Iran and Selected Developing Countries

Undoubtedly, globalization is origin of globalizing human issues, but the effects of this process do not spread evenly. Only those who have the capacity to compete in educational settings can benefit from this process. Education will be a key parameter for each country to assess the benefit of this process. In this paper, the effects of globalization on education (educational expenditures) have been studied in 36 selected developing countries, including Iran, over the period from 1970 to 2013. Panel co-integration techniques with the approach of dynamic ordinary least squares (DOLS) have been employed to estimate the effects of variables. The empirical results suggest that globalization have a positive impact on educational expenditures and leads to increase in educational expenditures at the selected developing countries. At the same time, it was found that the world financial crisis has negative impact on educational expenditures at the selected developing countries.