INFLATION AND THE FINANCING OF EDUCATION IN UZBEKISTAN: A MEDIATION ANALYSIS OF MACROECONOMIC AND SOCIAL CHANNELS
DOI:
https://doi.org/10.5281/zenodo.17443825Keywords:
Inflation, Education Spending, GDP, Government Revenue, Poverty, Mediation Analysis, Uzbekistan.Abstract
This study investigates the effect of the inflation rate on education spending in Uzbekistan from 2014 to 2023,with a specifc focus on the mediating roles of Gross Domestic Product (GDP), government revenue, and the poverty
rate. Using a causal research design and secondary data from the World Development Indicators (WDI), this study
applies mediation analysis through multiple regression techniques. The fndings reveal that inflation negatively impacts
education spending both directly and indirectly, primarily by slowing GDP growth, reducing government revenue, and
exacerbating poverty levels. The results emphasize the urgent need for policymakers to stabilize macroeconomic
variables to safeguard education funding. Strengthening GDP growth, improving revenue collection, and implementing
poverty reduction strategies are critical to ensuring consistent investment in education amidst inflationary pressures.
This research flls a signifcant gap by exploring these relationships in the context of a transitional economy and provides
evidence-based insights for fscal policy improvements in Uzbekistan.
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