Analysis of The Efficiency of Public Expenditure on Education in the Republic of Moldova from the Perspective of Economic Development

Abstract

Education is one of the most redoubtable instruments which drives the economic growth and stimulates the accumulation of human capital. Government expenditure on education plays a pivotal role in developing fundamental aspects of education and, in the long run, contributes to the economic extension in terms of labor productivity, income, and poverty reduction. Therefore, in order to ensure the prosperity of the Republic of Moldova, it is essential to analyze the educational system and strengthen the basis of human capital, fact that demonstrates the actuality of the theme. The purpose of this research consists in investigating the efficiency of public spendings in education and its level of compliance in relation to the current needs of reforming the educational system in Moldova. In order to achieve this goal, the subsequent research methods were used: the method of qualitative and quantitative analysis applied to the determination and interpretation of economic indicators, the descriptive method used to describe the relationship between the quality of education and the standards of economic development, as well as the methodology of induction, deduction and comparison that allowed reporting the national situation to the international conjuncture. The results showed that governments should improve the way in which they allocate funds in this field and reinforce their efforts to strengthen the national tertiary education. CZU: 336.5:37.014.543(478); JEL: I220, H520