Government Spending and Education Sustainability: Evidence-Based Insights from Saudi Arabia

Attaining education sustainability is indeed important as it ensures the overall economic sustainability of countries and it is directly connected with the United Nations Sustainable Development Goals (SDG-4). However, the literature evidence on the determinants of education sustainability is indeed very scarce and largely inconclusive, particularly in the case of the Kingdom of Saudi Arabia (KSA). Accordingly, this research paper focuses on exploring the determinants of education sustainability by focusing on the role of government education spending. The paper utilized annual time series data for the period 1991–2023 and applied the time series cointegration technique of “Autoregressive Distributed Lag (ARDL)” to assess the long-run and short-run impact of government education expenditures on education sustainability in KSA Our results based on the ARDL approach demonstrated that government expenditures have casted a positive influence on education sustainability both in the long run and short run in the case of KSA. Similarly, we found that trade openness, which is the main determinant of economic performance, has positively contributed to education sustainability in the long run and short run in KSA. On the other hand, the unemployment rate has worsened education sustainability both in the long and short run. The results further demonstrated a negative short-run impact that FDI has on education sustainability, suggesting structural or sectoral dynamics that need further empirical investigation. Moreover, GDP per capita has improved education sustainably only in the long run while its short-run impact is insignificant. Our results offer important policy implications for the policymakers of KSA to attain education sustainability and contribute to the overall economic sustainability, which is aligned with the Vision 2030 of KSA.