Do educational expenditures matter? Application of a smooth transition regression model

World Development Sustainability Pub Date : 2025-08-15 DOI:10.1016/j.wds.2025.100243

Khadijeh Hassanzadeh , Iman Emtiazi Naeini , Parisa Rahimkhoei , Majid Sameti

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Abstract

One of the essential preconditions for economic development across various sectors is education, which plays a significant role in fostering economic growth. This article examines the impact of educational expenditures on the effectiveness of factors influencing industrial value added in Iran from 1984 to 2019, utilizing the nonlinear Smooth Transition Regression (STR) model. The findings reveal that this relationship is statistically significant at both high and low values of the transition variable. In this study, government investment in education is treated as a transition variable and an alternative to educational expenditures. The results indicate a threshold of 7.44 % and a slope of 1.3. In the first regime, both the exchange rate and workforce negatively affect industrial value added. Conversely, in the second regime, the exchange rate and workforce have a positive impact on added value. Notably, physical capital exerts a linear and constant effect on added value in both regimes, while educational expenditures significantly enhance added value only in the second regime.

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教育支出重要吗？平滑过渡回归模型的应用

教育是各领域经济发展的重要前提之一，在促进经济增长中发挥着重要作用。本文利用非线性平滑过渡回归（STR）模型，考察了1984 - 2019年伊朗教育支出对工业增加值影响因素有效性的影响。研究结果表明，这种关系在过渡变量的高值和低值上都具有统计学意义。本研究将政府教育投入作为一个过渡变量，作为教育支出的替代。结果表明，阈值为7.44%，斜率为1.3。在第一种制度下，汇率和劳动力都对工业增加值产生负面影响。相反，在第二种制度下，汇率和劳动力对增加值有积极影响。值得注意的是，在两种制度下，物质资本对增加价值都具有线性和恒定的影响，而教育支出仅在第二种制度下显著提高了增加价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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World Development Sustainability

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