Global Shocks of Education, Health, and Environmental Footprint on National Development in the Twenty-First Century: A Threshold Structural VAR Analysis

Abstract

This paper provides an insight on whether the global shock of education budget, health budget, and environmental footprint are supporting national development in the twenty-first century as world aggregate data analysis from 2000 to 2019 using the Threshold Structural Vector Autoregressive (ThSVAR) model. The findings revealed that global shocks of the education budget and health budget are partially causing economic growth, but the environmental footprint is partially decreasing it; global shocks of the education budget are substantially raising the human development index while health is partially raising it; global shocks of the education budget and health budget are partially reducing the rate of unemployment, but the environmental footprint is raising it. Furthermore, the levels to which education and health budgets are cost-effective for national development are 4.246523% of GDP and US$e^6.768500 of health budget per capita for economic growth, 4.302660% of GDP and US$e^6.901392 of health budget per capita for human development index, and 4.251330% of GDP and US$e^6.768500 of health budget per capita for the unemployment rate. Moreover, education and health budgets are negligibly curbing environmental degradation. In addition, the levels to which education and health budgets are cost-effective for curbing environmental degradation are at 4.456587% of GDP and US$e6.901392 of health budget per capita. In line with these findings, a couple of policy recommendations and suggestions for further research were made.