Bridging the Gender Gap: Exploring the Nexus between Education, Public Expenditure, and Economic Growth in Bangladesh

Abstract

Achieving gender equality in education is widely recognized as essential for driving sustainable economic development, with public expenditure playing a pivotal role in fostering such equality. Understanding the interplay between these factors can inform policies to promote inclusive growth. This study aims to explore the relationship between gender equality in education, public expenditure on education and economic growth in Bangladesh from 1995 to 2022, using the ARDL model in two parts: first, it investigates the impact of gender equality, as reflected by female secondary school enrollment, on economic growth in Bangladesh in both short and long run; second, it evaluates the short and long-run dynamics of public expenditure on education in promoting gender equality in education. Results reveal that in the long run, a 1% increase in female secondary enrollment is associated with a 10.72% decrease in GDP per capita. This might be attributed to low workforce participation among educated women, societal norms, and job market mismatches. Conversely, public education expenditure significantly affects gender equality in education, with a 1% increase in expenditure leading to a 0.1048% increase in female enrollment. Short-term results indicate that changes in female enrollment do not significantly influence GDP per capita. At the same time, public education spending continues to positively impact female enrollment by 0.067% per 1% increase in spending. The findings of this study have important implications for shaping education and economic policymaking within the country. It suggests that the government should prioritize policies that enhance workforce participation among women, challenge restrictive societal norms, and better align education with labor market demands to achieve meaningful economic growth. Furthermore, the study emphasizes the need for gender-responsive budgeting, infrastructure development, and

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curriculum reforms as essential measures to maximize the impact of education on sustainable economic growth and social progress.