Economic and development performance of public spending on education

Education is one of the most important income and development sources within an economy. Economic performance measured by real quantitative index such as Gross National Product (GNP) and Unemployment Rates (UE) is constrained by public expenditure on education due to its positive functional relationship with human capital accumulation. However, the human capital - growth - development link has not always been successfully stated in different countries for several reasons. The following research document makes an analysis of public expenditure on education in comparison with economic performance of relevant variables that are associated with economic growth and development in Latin America. Research methodological design allows finding evidence of either a positive or negative relationship of public spending on education over economic and development performance. Effect direction and effect relative magnitude giving initial expenditure in every country of Latin America are estimated to isolate educational impact over economic growth and countries development.