Government Education Expenditure Research Articles

Government Expenditure and Poverty Reduction in Nigeria (2000-2022)

This study investigates the association between government expenditure and poverty reduction in Nigeria from 2000 to 2022, employing a panel dataset and the Ordinary Least Squares (OLS) regression method. The Multidimensional Poverty Index (MPI) is the dependent variable, while government spending on education, health, and infrastructure is the independent variable. The analysis is conducted using E-VIEW statistical software. The study’s primary findings reveal that an increase in government education expenditure has a statistically significant and negative effect on poverty reduction, both in the short and long run. Conversely, government health expenditure demonstrates a significant negative impact only in the short run, losing its effectiveness in the long run. On the other hand, government capital expenditure exhibits a significant negative influence on poverty reduction in both the short run and long run. These results emphasise the critical importance of prioritising investments in education and infrastructure for sustained poverty reduction endeavours in Nigeria. In terms of policy implications, the study underscores the necessity of augmenting government spending on education to foster inclusive education and address the predicament of out-of-school children. Additionally, policymakers should consider healthcare systems’ long-term viability and efficacy while allocating health expenditures. Sustained investment in capital projects and infrastructure development is indispensable for poverty reduction. The study’s findings significantly contribute to existing knowledge and underscore the pivotal role of these sectors in poverty reduction strategies. Consequently, it underscores the urgency of targeted and enduring investments, efficient resource allocation, and comprehensive strategies to combat poverty and foster inclusive development within the country effectively

Public sector spending, governance, and economic growth in Sub Saharan Africa

Aim/purpose – This study examined the impact of public sector spending and govern- ance on economic growth in Sub-Saharan Africa (SSA) and further assessed the role of governance in the causal relationship between public sector spending and economic growth in the sub-region. Design/methodology/approach – The study employed the Panel Corrected Standard Errors (PCSE) estimator on data spanning the period 2002 to 2020 across a sample of 31 selected countries in SSA. To check for the robustness of the results, we adopted the Dumitrescu and Hurlin (2012) panel non-causality test to detect Granger causality in the relationships among the variables. Findings – The findings show that spending in the public sectors alone, such as educa- tion and health, does not always yield the needed outcome of promoting economic growth. Government education expenditure stimulates economic growth in SSA, albeit the effect is statistically insignificant, whereas government health expenditure has a growth-limiting effect in SSA. The results reveal that government effectiveness, rule of law, political stability, and absence of violence/terrorism are among the governance indicators that can help to fast-track economic prosperity in SSA. However, the results further show that good governance can act as a stimulant to invigorate the effectiveness of public sector spending in achieving economic growth in SSA. The growth-enhancing complementary role of good governance to public sector spending is robust across all governance indicators except political stability for government education spending and regulatory quality for government health spending. Research implications/limitations – The findings imply that strengthening good gov- ernance in SSA is non-negotiable in managing and using public funds allocated to the public sectors and in achieving sustainable economic growth, poverty alleviation, and income inequality reduction in the sub-region. However, the findings of this study are limited to the SSA region and may not apply to other regions of the globe. Originality/value/contribution – The contribution of this paper is that it examines the moderation effect of governance in the causal relationship between public spending and economic growth in SSA while accounting for cross-sectional dependence. The paper also contributes to the existing literature by using disaggregated governance and public sector spending components to ascertain the robustness of the results and better inform policy. Keywords: education expenditure, economic growth, governance, health expenditure, panel-corrected standard errors estimation, public sector spending. JEL Classification: H, I, O

Analyzing the Influence of Government Education Expenditures on the Primary Completion Rate

This research paper aims to study the relationship between the total government expenditures on education and the total primary completion rate by using regression analysis. This study uses data from The World Bank database in 2016, including many different countries and regions. On average, almost 94% of students complete their primary education. The researcher hypothesizes that the amount of government expenditures on education could play a massive part in the average primary completion rate percentage being so high. It would make sense if the higher the government expenditure, the higher the completion rate. On average, government expenditures on education only amount to 15.6% of total government expenditures when further investigating this matter. If government spending plays a large part in the primary completion rate, this number would likely be much more significant. The regression used in this study included the Primary Completion Rate as the Y variable, Government Spending as the key X variable while controlling for the pupil-to-teacher ratio, and trained teachers in primary education. The full regression model included the dummy variable for the country Nauru. The model showed government spending to be negative, having no statistical significance on the primary completion rate in the first three regressions, and positive with no statistical significance in the complete regression. The results tell us that the exact opposite of what the researcher hypothesized. If government spending impacts the primary completion rate, we will suspect the regressions to be positive and have statistical significance on some conventional level.

Challenge and Ethical Aspects of technological use in Rwanda Basic Education

The implication of artificial intelligence in education brought significant improvement to traditional models of teaching and learning processes. This paper was aiming at bringing to the right prospects, challenges and ethical aspects of technological use in Rwandan basic education.  Purposive non probability sampling technique was used to select study participants. Descriptive statistics and thematic approach were used to analyze collected quantitative and qualitative data. Effective creation and implementation of technological with various adaptive learning platforms (Liushuo in China, NLP in USA, PAM in Germany, Education Technology company Greekie in Brazil and M-shule in Kenya), Advanced data analytic platforms, the introduction of technological use as major course in universities, and Investment for technological use research were established as prospects of technological use at the level of 26.80%, 24.10%, 26%, and 23.10% respectively. Besides, other potential prospects like multi-source of data analysis and audio-Visio teaching and learning materials were revealed as key prospects of technological use. Fragile technological infrastructure, inadequate government expenditure in education, achievement gap in education, resistance to implement technological use and unprepared teacher for technological use implementation were found as challenges of technological use at 85%, 75%, 65%, 60%, 40% respectively. In addition, curriculum transition, culture and religion of some countries, resistance to change mindset were suggested as other challenges of technological use. Cultural integration; accountability; fairness, equity and affordability; security, and privacy were found out as the main ethical aspects of technological use at 33.3%, 28.6%, 14.3%, 14.3% 9.5% respectively. Increasingly Humanity, singularity, authentication and profitability, personal interests’ investment, humanitarianism, and solitary were suggested as ethical aspects of technological use. The paper recommends that technological use theorists carefully mitigate the impacts of technological use on humans. Keywords: Technological use, ethical aspect and technological challenges

Does the government expenditure on education and family income boost educational expansion? Lesson from panel FMOLS

One of the problems of education development in Indonesia is the slow distribution of education, especially in the regions. Understanding the relationship between government spending on education and family income helps improve education equity in the region and formulate appropriate education policies. The study examines the effects of government expenditure in education, family income, poverty, and control variables on the primary, junior, senior secondary of net enrollment ratio and means years of schooling. This study utilized secondary data from regencies/municipalities in Banten Province over the period from 2000 to 2019. The panel FMOLS model found that family income contributed significantly to increasing the education expansion as measured by net enrollment rate in primary, junior, senior high schools and mean years of schooling for all models. Poverty only affected the net enrollment rate for junior high school, senior high school, and mean years of schooling in the long term. However, the findings on the impact of education spending on educational expansion are ambiguous. Furthermore, it depended on the method utilized. This research contributes to providing local government policy input to improve education services through increasing family income, reducing poverty, and providing educational opportunities for the school-age population to obtain equal education services.

Economic Growth in Saudi Arabia through Sectoral Reallocation of Government Expenditures

The article employs auto-regressive distributed lag (ARDL) cointegration and error-correction modelling to study the long-run impact of investment, exports, imports, and three components of government expenditures (expenditures on health, education, and other government spending) on GDP growth in Saudi Arabia from 1985 to 2018. We observe the long-run positive relationship between GDP, investment, exports and government education expenditure, but a negative relationship between GDP, imports, government health spending, and government other expenditures. The analysis reveals that investment, exports, and government educational expenditures all have long-run positive effects on the GDP growth, while imports, government health expenditures, and government other expenditures negatively affect GDP growth in Saudi Arabia. The Toda-Yamamoto causality test that applies the Modified Wald test establishes causality from exports, government education spending, and government health spending to GDP. We deduce that education expenditures stimulate economic growth in Saudi Arabia in contrast to health expenditures. Additionally, we infer that the various categories of government expenditures have varying effects on GDP. This necessitates a prudent sectoral allocation of public expenditures to maximize its positive effects on GDP growth and stimulate economic growth in Saudi Arabia. Moreover, the above findings have policy implications for the government in Saudi Arabia while allocating its expenditures. Allocating more government expenditures to education, cutting down inessential spending, and downsizing government healthcare expenditures will enhance long-run economic growth in Saudi Arabia. JEL Classification: O470; I15; I25

How do social and economic factors affect carbon emissions? New evidence from five ASEAN developing countries

This study analyzes the long and short-run impacts of social and economic factors on carbon emissions from five developing ASEAN countries during the period 1986–2017. Utilising a Pooled Mean Group Estimator, we find a nonlinear relationship between CO2 emissions and real GDP, confirming the Environmental Kuznets Curve. Our results indicate that energy consumption is the main driver of environmental degradation in these countries; and that FDI and urbanisation reduce carbon emissions. Our research indicates both a long-run and short-run nexus between government education expenditures and CO2 emissions. We conclude with policy suggestions to reduce CO2 emissions while attaining sustainable growth.

Housing property tax, economic growth, and intergenerational welfare: The case of China

In an endogenous growth model of overlapping generations, this paper shows that an introduction of a housing property tax in China increases physical and human capital accumulation and growth rate of output in the long run no matter the revenue from housing property tax is used for reducing government debt, personal income tax, or capital income tax, or for increasing government education expenditure. The tax reform has a strong inter-generations redistribution effect, i.e., it increases the welfare of future generations but reduces the welfare of current generations.

Impact of of Government's Human Capital Expenditure on Economic Growth of Nepal: An ARDL Approach

Background: Quality health services, education and training, play a pivotal role in expanding the productivity and income of the people. The government's expenditure on education, health and social sector is increasing rapidly in developing countries like Nepal. The increasing public spending has helped achieve the MDGs targets and is helping to meet the SDGs targets.
 Objectives: This study is engrossed in measuring the impact of the government’s expenditure on education, health and social sector on the economic growth of Nepal.
 Methods: The fundamental Cobb-Douglas production function is applied to measure the economic growth of the Nepalese economy. The unit root and stationarity of variables are checked through ADF, PP and KPSS. The time series econometric model of ARDL is used to explore the short-run and long-run relationship of the variables. The validity of the ARDL model is also examined to verify the authenticity of the econometric outcome.
 Results: The study has anticipated that the government's education expenditure is inversely related to real GDP. In contrast, the health expenditure has shown a negative impact in the same year but a positive one in the lagged year. Similarly, the government's social expenditure and gross capital formation have a negative effect on the same year, whereas they exhibited a significant positive impact in the lagged year. Further, In the long run, the government's education and health expenditures negatively impact (-0.7233 and -0.0055), respectively in, growth. Similarly, the government's social sector expenditure (0.20189) and gross capital formation (0.14610) positively impact Nepal's economic growth.
 Conclusion: The econometric results of this study explain that the government's expenditure on the education and health sector has a negative impact on economic growth, and the social sector and gross capital formation have a positive impact on the economic development of Nepal. The investment in such sectors by the public sector of the private sector is significant to increase the labour force's productivity and enhance the livelihood of the poor people. Further, it reveals that the human capital investment is a continuous process and takes a generation or more to expose the outcome in the real sense.

Fiscal Policy and Income Inequality: The Critical Role of Institutional Capacity

Rising income inequality has become a defining global challenge that hinders the achievement of the United Nations Sustainable Development Goals. The paper investigates the effect of fiscal policy and institutional capacity on income inequality among developed and developing countries. Applying the system Generalized Method of Moments (GMM) to control potential endogeneity for countries from 2000 to 2019, the following results have been established. The dynamic effect captured by the first lag of inequality suggests that the widening income gap is persistent in both developed and developing countries. We also find evidence that income tax is more progressive and may abate income inequality in developing countries and not in developed countries. However, taxes on goods and services were found not to impact income equalization globally. Furthermore, the findings reveal that government size, education expenditure, and health expenditure are negatively associated with income inequality in developed countries only. Public debt was observed not to influence income distribution across the world. We observed that corruption and government effectiveness do not significantly impact income distribution in developed and developing countries for institutional capacity. However, in most cases, the coefficients of the interactions between fiscal policy and institutional capacity bear the expected signs, albeit insignificant. Some policy recommendations have been offered.

Human Capital and Economic Growth in Sub Saharan Africa Countries: ARDL and ECM Analysis

The long-run relationship between human capital and economic growth in Sub Saharan African (SSA) countries was examined using An ARDL and ECM cointegration analysis approach. The endogenous and human capital theory posits that human capital accumulated acquired from the education system contributes to economic growth in any economy. Despite many years of huge government expenditure in education, SSA countries appears to experience little or no economic growth. Studies on the long term effects of human capital on economic growth in SSA countries remain few despite a growing body of research in literature. Using data from 37 SSA countries for the year 2000- 2018 an Autoregressive Distributed Lag ARDL and Error Correction Model (ECM) cointegration the study estimated a Dynamic Fixed Effects model (DFE) to examine the long run relationship between human capital and economic growth. The findings revealed that a cointegration relationship exist between human capital and economic growth. Secondary education had a significant but weak positive effect on economic growth in the short run and a weak negative effect on economic growth in the long run. Primary education however, had an insignificant contribution to economic growth both in the short and long run. Physical capital hadsignificant and strong positive effect on economic growth in the short run whilst in the long run it has an insignificant effect. SSA countries interested in enhancing long run term economic growth through human capital should consider promoting access to secondary school enrolment and improving the quality of primary education. The study providedempirical evidence on the short and long run contribution of human capital to economic growth in SSA countries.

The Effect of Investment in Education on China’s Economic Growth: The Role of Financial Development

Earlier studies have focused on how education investment affects economic growth in different countries, namely developed and developing countries. The conclusions have been ambiguous and one of the dominant factors leading to such variation is the omission of financial development indicators. The present paper makes use of panel date from 2005 to 2019 on 31 provinces of China to examine how financial development can influence the relationship between education investment and economic growth. The findings show that financial development does not facilitate the impact of education investment on economic growth in wealthier regions. However, for poorer provinces with GDP per capita below the average, financial development as proxied by the ratio of total loans and total deposits in the financial system to GDP, respectively, can indeed enhance the effect of education investment on economic growth. Such enhancement is valid even when the proxies for education investment and financial development respectively pose negative effect on economic growth. Credit expansion and savings increase may facilitate government expenditure in education, which in turn promotes economic growth in relatively poor provinces to a greater degree than does the relatively wealthy provinces. Financial development strategy should be targeted to poorer provinces with below-average economic growth to facilitate growth-promoting educational financing.

Environmental information disclosure and green technology innovation: Empirical evidence from China

Environmental information disclosure is a dominant feature of good ecological environment construction, which reflects the emergence of social supervision. In this paper, we employ the Difference in Difference (DID) method, for 289 prefecture level cities in China that allows us to open up new empirical evidence of the effects on green technology innovation. The results indicate that disclosure of environmental information is more likely to promote green technologies, which is measured by green patent application. As substitute indicators, green patent of utility model and invention patent further confirm the result by robust test. To address the potential regional heterogeneity, we find eastern China might be the place where the above three green patent application have their most pronounced effects. Pollution Information Transparency Index (PITI) was designed to spur innovation, which also has been proved in our paper. Furthermore, green innovation environment, pollution charges and industrial structure have been identified as mediator variables, and foreign investment, government education and technology expenditure in terms of capital investment have been testified as moderator variables.

The Effect of of Income Distribution Inequality on Government Education Expenditure in Iran's Economy: New Evidence from an ARDL Approach

The Effect of of Income Distribution Inequality on Government Education Expenditure in Iran's Economy: New Evidence from an ARDL Approach

Agent-based modeling of social and economic impacts of migration under the government regulated employment

This article presents an approach to modelling the socio-economic impacts of migration using an agent-based model (ABM) of interactions between migrants and natives. The model also accounts for a regulatory function of government which is the centralized creation of new workplaces that differ in the level of ‘technological return’ (i.e. the labour productivity that depends on the sectoral belonging of the formed workplaces). The proposed approach is based on the previously developed model of interactions between migrants and native individuals. It is focused on studying the socio-economic impacts of migration in the system with a more complex regulatory function of the government, which creates low-technological and high-technological workplaces that are attractive for migrants and natives, respectively. The agent-government has two possible strategies of workplace creation: cluster-based workplace creation in areas with high concentration of migrants and natives and creation of uniform workplaces aimed at increasing multi-particle interactions between agents of different types, and reducing the level of population segregation. This study also investigates the processes of assimilation, which are subject to the level of segregation of the studied communities, public investment in education and integration, etc. The proposed model also considers the influence of various control parameters, in particular, the influence of the agents’ tolerance level on their location choice in a boundary neighbourhood, the influence of the agents’ education level on the job search area dimension, and other important characteristics reflecting the behavioural features of members of the studied communities. Socio-economic impacts of migration are studied under various scenario conditions, which include different patterns of agents’ behaviour belonging to the considered communities, the rate of new migrants’ inflow, the amount of government education expenditures, etc.

The Dynamic Impact of Government Expenditure in Education on Economic Growth

The focal aim of this study is to examine the validation of education-led economic growth hypothesis in Malaysia under the recovery period following the 2008 world economic crisis. Specifically, this study implemented the augmented Cobb-Douglas model in order to observe the dynamic relationship between selected variables including, industrial production index, gross fixed capital formation, employment, government spending on education and broad money supply. This study adopted the Vector Error Correction Model (VECM) in analysing the dynamic impact between variables and generally supports the education-led growth hypothesis in the short and long run. Specifically the study corroborates the bidirectional causality between education spending and economic growth, and vice versa, in the short run. The result also reveals that long-run equilibrium relationship exists between government expenditure in education and economic growth in Malaysia during post-crisis recovery regime. The education-led growth hypothesis can thus be inferred for the economy following crisis. The government should thus be advised that increasing education sector spending should increase post-crisis economic growth in both the short and long run. This is further strengthened by Granger causality test result which suggests unidirectional causality that runs from financial variable to economic growth. It is accordingly suggested that financial variable is a determinant of government spending on education in the aftermath of the economic crisis. Additionally, the study also supports the role of capital and employment on economic growth in the long term. By implication, the study suggests that financial planning as related to national education policies must be carefully and meticulously crafted, to ensure future success. This is linked to the investment in human capital which includes education expenditure at different levels that is essentially important to national long-term planning. The specific financial planning for human capital development is therefore very important to ensure the expenditure incurred contributes to sustainable economic development in Malaysia in the long term.

Pengaruh Indeks Ketahanan Pangan, Pengeluaran Pemerintah di Bidang Pendidikan dan Kesehatan Terhadap Indeks Pembangunan Manusia pada 10 provinsi di Pulau Sumatera

This study aims to: 1) analyze trends in the HDI, Food Security Index, Government Spending in Education and Health between Provinces on the island of Sumatra. 2) analyze the influence of the Food Security Index, Government Expenditure in Education and Health on the Human Development Index on the island of Sumatra. This study uses secondary data available from the Food Security Agency and the Central Statistics Agency in 2014-2018. The method used is descriptive and quantitative methods using panel data analysis tools. This study found that: 1) the development of HDI in 10 Provinces of Sumatra increased each year but tended to be slow, the development of government spending in education and health in 10 Provinces of Sumatra fluctuated each year but was still in the minimum provisions of the regional budget, and the Index Food Security in 10 Provinces in Sumatra also experienced fluctuating developments. 2) the variable Food Security, Government Spending in the field of Education and Health partially and simultaneously has a significant positive effect on the Food Security Index.

Fresh insight through the VAR approach to investigate the effects of fiscal policy on environmental pollution in Pakistan.

This study explores the impact of fiscal policy on environmental pollution, employing the vector autoregressive (VAR) model on annual data from 1976 to 2018 in Pakistan. We estimate the effect of total expenditure, total revenue, education expenditures, health expenditures, and other dynamic determinants such asgross domestic product (GDP), private investment, market rate, and crude oil price on carbon dioxide (CO2)emissions in particular. Further, this study creates impulse response functions to check the fiscal shocks, coordinating with five scenarios of public expenditures, segregated into government revenue, and education and health expenditures. The outcomes indicate that government spending in the public sectors (education and health) had a diminishing effect on CO2 emissions, whereas government revenue that was collected from taxes improved economic growth but at a cost of environmental pollution. In Pakistan, a fiscal policy scenario has been implemented that increases government expenditures to alleviate the effects of CO2 emissions. Therefore, policymakers should provide the right direction for the feasible distribution of resources in every public sector through a powerful structure, which will ultimately reduce the overall level of environmental deficit.

Government expenditure and longevity of African leaders

This study examines the effect of government's military, education and health expenditure on the longevity of Sub-Saharan Africa state leaders. This research is particularly important in the context of Sub-Saharan Africa, a region where public expenditure on education and health is relatively low despite these sectors having been long identified in the economic literature as pillars of economic development. The study uses a survival model with a sample of 81 office periods from 37 Sub-Saharan Africa countries for the period 2000 to 2017. Potential endogeneity is addressed using instrumental variables. The data shows that, after 10 years in office, government expenditure per capita on the military increases on average while it decreases for education and health. Furthermore, autocratic leaders spend more on the military than democratic ones, and the reverse for education and health expenditure. Although the data shows a positive correlation between military expenditure and leaders’ longevity, the regression analysis does not identify a causal effect of military spending on duration in office. The analysis also shows that education and health expenditures do not influence duration in office. This latter finding points to the necessity of reforming governance in the region in order to better align leaders’ incentives with the social needs of the general population.

Research on the Evaluation of higher Education Health system based on Principal Component Analysis

The higher education system is the most important component of civic education in addition to primary and junior secondary education, and is therefore valuable both as an industry itself and as a source of national economic training and educated citizens. It is very important for a country to have a healthy and sustainable higher education system. First of all, this paper sets up six indicators to judge the health status of the higher education system: the number of higher education institutions, government education expenditure, the number of students receiving higher education, the number of teachers receiving higher education, student satisfaction and international exchanges. Then establish the principal component analysis model, through the principal component analysis to judge that among the six influencing factors, the number of colleges and universities, government education funds, the number of students receiving higher education and the number of teachers are the main influencing factors. Taking the above main factors as eigenvalues, the same number of countries are selected from the top, list and bottom of the list according to the list of the best countries in education in the world, and their relevant data are collected. The fuzzy comprehensive evaluation model is used for modeling and evaluation, and the analysis results of many countries are obtained.