Government spending on education boosts economic growth in Ethiopia by 0.9%.
Government spending on education in Ethiopia between 1998 and 2015 positively impacts economic growth. A study found that increasing government expenditure on education leads to a significant increase in output, with a 0.9% rise in output after an education spending boost. Additionally, an increase in the labor force also boosts output, while inflation and exchange rate shocks have negative effects on economic growth.