The main purpose of this chapter is to review previous literature regarding the
concepts of the determinants of public expenditure on education. In fact, government
expenditure policy is the most complicated form of the three expenditures (private
consumption, private investment, and government expenditure) because there is no
theory of government expenditure (Domar, 1957). Various public policy determinant
theories are reviewed in order to provide a solid framework for the analysis. Although
much of the literature explores the determinants of government expenditures, they
always focus on major economic variables such as economic growth. In the review of
the literature, this study seeks to critically assess the multi-layered dimensions of the
factors that theoretically affect the allocation of public expenditure on education