Government Spending In Education Research Articles

Assessing the Role of Government Spending in Education and Economic Growth in Malaysia

Education is a key driver in developing human capital, which refers to a workforce's skills, knowledge, and abilities. A well-educated and skilled human capital resulted in being more productive, innovative, and adaptable to economic changes. This, in turn, contributes to higher economic growth. However, insufficient government spending on education poses a significant challenge, hindering human capital development essential for economic growth. Thus, the purpose of this study is to examine the role of government spending in education (TEDU) on economic growth (GDP) in Malaysia from 1990 to 2020 using Ordinary Least Square (OLS) estimation methods. Foreign Direct Investment (FDI) and total unemployment (UNEMP) are also included in the study as control variables. The result showed that TEDU and FDI are positively cointegrated with GDP, while UNEMP is negatively cointegrated with GDP. Findings show that government expenditure on education acts as a strategic investment that can extensively impact economic growth by promoting human capital development, enhancing productivity, and establishing a more inclusive and competitive economy. Policymakers should prioritize sustained investment in education for long-term economic development and global competitiveness.

Relationship Between World Happiness Index, Hoefstede Cultural Dimensions And Government Education Spending

The author analyzes the interplay between the World Happiness Index and a nuanced array of seven variables in this research. Specifically, the focus extends to the Hofstede Cultural Dimensions, encompassing six distinct facets and the financial allocations dedicated to government education spending. The author starts with a literature survey on the profound domains of happiness and wellbeing. Building upon this foundation, the author posits the Hofstede Cultural Dimensions and Government Education Expenditures as prospective variables that may yield a discernible influence on the World Happiness Index. A dataset spanning 58 countries and analytical methodologies of Ordinary Least Squares (OLS) regression and Iteratively Reweighted Least Squares (IRLS) regression are used to test this conjecture. The outcome of this study reveals compelling insights into the association between the World Happiness Index and the identified variables. The results underscore a discernible relationship between the World Happiness Index and specific dimensions of cultural orientation, such as individualism, long-term orientation, and indulgence. Furthermore, the study reveals that government investment in education is another factor influencing the overarching landscape of happiness. These findings transcend mere statistical findings; they serve as beacons of knowledge with far-reaching implications for education policymakers, educators, and individuals interested in understanding the complexities of cultural variations, educational dynamics, and overall wellbeing. The implications of this research can offer relevant information to those who navigate the intricate intersections of cultural diversity, education policy, and the pursuit of societal happiness, such as education policymakers, educators and anyone interested in the issues of cultural differences, education, and wellbeing.

The Effect of Government Expenditure in Education, Health and Social Assistance Spending on the Poverty Rate of Yogyakarta Special Region Province

This study has the final results to determine the relationship between government spending in education, health and social assistance spending on poverty rates in the Special Region of Yogyakarta. This secondary data-based research has the form of a time series in 2012-2021, then the method used is multiple linear regression analysis with the OLS (Ordinary Least Squares) method. The results showed that programs on education implemented by the government of the Special Region of Yogyakarta through variable government spending in education were right on target and able to reduce poverty. but, variable government spending on health has not been able to reduce poverty and social assistance spending will increase poverty due to the effects of government dependence.

Measurement Efficiency of Local Government Spending on Poverty Alleviation in Sumatra: Output Oriented Approach With Data Envelopment Analysis

This research aims to measure efficiency of local government spending in poverty alleviation during the COVID-19 pandemic in Sumatra, Indonesia. Data Envelopment Analysis (DEA) was applied as a measurement efficiency method with output-oriented based on variable returns to scale approach.The type of data used in this study is secondary data and implements explanatory analysis. The object of our observation in this study involves total local governments in Sumatra (154 regencies/cities). It used government education spending per capita, health spending per capita, economic spending per capita, and social security spending per capita as input. The Output that we used is the poverty rate. The results show that poverty alleviation through government spending efficiency policy only can achieve by eight local governments, i.e.Deli Serdang, Simalungun, Medan, Sawah Lunto, Pekan Baru, Lampung Tengah, Bangka Barat, and Batam. Pekan Baru is the relatively most efficient regency, while Meranti has the lowest efficiency. 146 inefficient local governments should benchmark to their peer to improve their efficiency score. In addition, differences in the level of efficiency between local governments within one province also need to be inspected.

An Empirical Retrospect of the Causal Effect of Government Education Spending on Growth in a Neoclassical Growth Model

There has been consensus on the notion that education results in economic prosperity and growth in many countries. This has resulted in a strong focus on education policy, with large investments and a lot of public debates concerning the subject. Various schools of thought have made differing suggestions about how government spending impacts economic growth over the years. The Keynesian view is that there is a positive relationship between government spending and economic growth, where the causal effect runs from government spending to economic growth. Conversely, the Neo-classical school asserts that the relationship between the two variables is negative. The topic, therefore, remains a debatable issue. The present study, therefore, tests the causal effect of education expenditure on economic growth in South Africa for the period 1994 to 2021, with the aid of the autoregressive distributed lag approach. Consistent with Keynesian theory, the study results confirm the positive impact of government spending on economic growth. A Granger causal relationship exists between government education expenditure and economic growth, indicating that over time, education expenditure positively impacts economic growth through human capital. This implies that investing (spending) in education is critical in promoting economic growth, especially in the long term.

The Influence of Government Spending in Education, Health, and Economics on Indicators for Calculation of Human Development Index in Bangka Belitung Islands Province

A country can be said to be successful in carrying out human development if its people enjoy the results of development. One of the indicators used to measure the extent to which development has affected results in a country is using the Human Development Index. In the Human Development Index there are three dimensions that are used as standardization of a decent life including the dimensions of education, health, and a decent standard of living or spending. To increase the Human Development Index based on the dimensions of education, health, and a decent standard of living, government spending is needed from the education, health and economic sectors. This study aims to analyze and determine the effect of government spending on education, health, and the economy on the indicators for calculating the Human Development Index in the Bangka Belitung Islands Province. This research uses a quantitative approach with secondary data. The analysis technique used is panel data regression with lag distribution. The results showed that there was a positive and significant effect between government spending on education in the same year and the previous year on the average length of schooling and there was a negative and significant effect between government spending on education in the same year and the previous year on the expected length of schooling. positive and significant effect between government spending on health in the same year and the previous year on life expectancy, and there is a negative and significant effect between government spending on the economy on per capita spending in the same year and in the previous year government spending on the economy is not effect on per capita spending.

Government Education Budget and the Sustainability of Student Enrollment in Public Secondary School in Bungoma County, Kenya

In Kenya, since 2008, the government has increased monies going to the education sector in collaboration with other foreign organizations in an effort to reduce the amount of money that households spend on their children who attend public secondary schools. In public secondary schools in Bungoma County, Kenya, this study aimed to determine how much the average government education spending affects the sustainability of student enrollment in secondary schools. A descriptive survey design was used for the investigation. The principals and household heads from Bungoma County's public secondary schools made up the target population. The 691 school principals and household heads in this study were chosen using a stratified random sampling procedure to ensure that the sample was representative. As instruments for gathering data, questionnaires, schedules for interviews and observations, and document analysis were all used. Expert judgment was used to determine validity. Through piloting, reliability was established. Statistics, both descriptive and inferential, were used to analyze the data. According to this survey, a secondary school student's Kshs 10,265 allowance is insufficient to keep them in school. According to the study's findings about government spending on each student, more students are enrolling in secondary school as government spending rises. As a result, this study suggests that, in order to raise the enrollment rate of pupils, the government or other educational stakeholders can assist parents who have children in first grade in purchasing a school uniform.

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.

Re-Examining the Impact of Public Education Expenditure on South African Literacy

Abstract Much empirical literature has focused on investigating the role of government expenditure in promoting long-term economic growth in South Africa. However, few studies in comparison have considered the impact of government spending on literacy level in the country. To this end, this paper examines the impact of government spending on literacy rate in South Africa using an Autoregressive Distributed Lag (ARDL) model with annual time series data over the period from 1994 to 2021. The key findings of this study are: (a) there is evidence of a long run relationship between government spending on education and the literacy rate in South Africa; (b) while the long run effect of government education spending on literacy is not significant, there is a statistically significant positive effect in the short run. These findings have several implications for policymakers and other stakeholders. Therefore, the study recommends that increased monitoring and evaluation mechanisms are desirable in the primary and secondary education sectors for accountability and reducing wastage of taxpayer funds. The Department of Education is also encouraged to re-consider current teacher training practices and fill long standing vacancies in the school sector that negatively impact education outcomes.

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

Resource allocation in Education and Socio-economic Education Development in the Small Industry in India

Economy of India can't accomplish the objective of sustainable economic development and education about small industries to the resource like human resources, until or unless it can put a generous sum in human resources. Education is a fundamental factor of development. It does not just improve the personal satisfaction of an individual yet in addition improves the social advantage of the public. The motivation behind this examination to discover how public expenditures on education can improve the economic and social state of the society in India. Regardless, the issue that whether further developed level of education coming about on the grounds that more education spending can advance economic growth is yet sketchy. A few economic and social analysts and researchers have maintained the two-sided connectivity between these two factors, yet some are recommending that economic growth essentially animates government to spend more on education, not the substitute way. The research question of this paper is "do education and expenditures on education get economic and social ith eduction of small industry advancement"? Considering this research issue, the current paper utilizes Granger Causality methods to conclude the causal connection between government's education spending and socio-economic development in India for the period 1972-2021. Results uncovered that there is no short run causality between government expenditure on education and socio-economic growth, yet economic growth influences public spending on education. This provides guidelines to the new education policy(NEP) makers that they should priorities their attention towards allocation of development and non-development expenditures of government’s budget to enhance the quality of education and welfare of individuals in the society. Special focus should be given on the compulsory primary education which is already a part of sustainable development goals.

Sustainable Development and Workers Ability: Considerations on the Education Index in the Human Development Index

Sustainability is an imperative of the 21st century in order to preserve the environment for the next generations, but sustainable development also requires the introduction and use of new technologies, and the related abilities for their use. The United Nations have adopted the Human Development Index HDI in order to assess human well-being. This index includes a component related to knowledge, the Education Index, which is expressed in terms of the mean schooling years. However, this information does not contain a measure of the student’s ability to solve complex problems or ability to reason, which are fundamental skills for sustainable development. In this study, an improved version of the Education Index was developed by considering the data available from the OECD’s Programme for International Student Assessment (PISA). This new index takes into account both the social impact of schooling years and the outcomes of the education systems for each country (PISA scores). As a consequence of this new Education Index, a new Human Development Index, HDI*, is proposed. Two case studies were performed, comparing the European and non-European countries, focusing on government education spending. Moreover, the trends of an energy and an environmental indicator are analyzed in relation to the HDI*.

Influence of Government Spending in Education on Academic Performance of Students in Senior Secondary Schools in Sokoto State, Nigeria

Influence of Government Spending in Education on Academic Performance of Students in Senior Secondary Schools in Sokoto State, Nigeria

PENGARUH PENGELUARAN PEMERINTAH BIDANG PENDIDIKAN DAN KESEHATAN TERHADAP IPM KABUPATEN SUMBAWA TAHUN 2015-2020

This study aims to know the effect of government spending in education and health toward Human Development Index (IPM) in Sumbawa District.The data used in this study was time series data for 5 years from 2015 to 2020. The type of this study was associative that uses quantitative data.The data sources used was secondary data obtained from the Finance and Asset Management Agency Regions (BPKAD). The technique used to analyze data were multiple linear regression, t test, f test and R2. The results of study showed that the variable of government spending in education had an effect toward the human development index as indicated by t-value was higher than t-table (4.462 > 3.182, then variable of government spending in health partially had effect toward the human development index, indicated by the t-value was higher than t-table (4.566 > 3.182. Furthermore, government spending in education and health simultaneously had effect toward human development index of Sumbawa District, this was based on the result of f-value was higher than f-table (17.762 > 9.55) with significance value of 0.022 <0.05. The value of R2 was 0.922 which means that the effect of government spending in education and health toward human developmentindex (IPM) in Sumbawa District in year of 2015-2020 was 92.2% while its remaining of 7.8% was affected by other variable out of this study.

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.

The ‘time-release’, crime-reducing effects of education spending

We analyze the response of violent and property crime to shocks in government education spending. The effects are significant, delayed, and persistent. This is consistent with government education spending working through the human capital channel in a time-release fashion.

ANALISIS DAMPAK PENGELUARAN PEMERINTAH DI BIDANG PENDIDIKAN TERHADAP PDB PER KAPITA: SPENDING MORE OR SPENDING BETTER

Government spending is the first way to create quality human resources through budget allocation commitments in the education sector. In turn, a labor market filled with quality human resources will encourage welfare and productivity and it will impact the national economy. This study aims to analyze the relationship of government spending in education to the aggregate welfare proxied using GDP per capita. This study used time-series data 1980-2018 from World Development Indicators (WDI) World Bank. Vector Error Correction Model (VECM) is employed to analyze the government spending in the education sector to the welfare. Empirically, the findings of this study reveal that government spending in the education sector affects aggregate welfare with a little magnitude. The issue of equity and disparity in fiscal capacity among regions is the main matter. On the other side, Geographic, social, cultural, and population conditions are challenges that must be solved by the government.

Does government education expenditure affect educational outcomes? New evidence from sub‐Saharan African countries

AbstractThe human capital crisis, reflected in the weak global competitiveness of African education, has questioned the effectiveness of public spending in increasing educational outcomes on the continent. Thus, this article examines the impact of government education expenditure on educational outcomes in 31 sub‐Saharan African (SSA) countries from 2000 to 2019 based on a generalized method of moments (GMM). The study sheds light on the priorities of government education spending on the continent. Findings showed that the effect of government education spending on educational outcomes in SSA was driven by the measure of educational outcome used. Government spending in Africa had focused mainly on primary and secondary education to the detriment of tertiary education because it is convenient and generates political gains. Due to institutional rigidities that emanate from the governance structure, the inequitable allocation of government funding had made higher education in Africa less responsive to the changes in global knowledge and labour market demands. Therefore, the following policy agenda becomes imperative in SSA: (i) government education spending should equitably target all education levels to improve the aggregate human capital development indicators in the region; (ii) there is a need to enhance government institutions' capacity to increase their level of effectiveness and performance.

DOES ECONOMIC INTEGRATION INCREASE FEMALE LABOUR FORCE PARTICIPATION? SOME NEW EVIDENCE FROM VIETNAM

While several studies have, directly or indirectly, showed the importance of economic integration in job creation and destruction, direct empirical evidence for Female Labor Force Participation (FLFP) is still sparse. We take the case of Vietnam – a country that has come out of poverty largely due to her export-induced economic growth – and examine the impacts on FLFP of economic integration over the period 1999-2014. Our results suggest that Vietnam’s export sector, which relies heavily on foreign direct investment and free trade agreements, is an important contributor to FLFP. Economic integration with high-income countries (compared to middle- and low-income countries) was found to be most beneficial to FLFP in Vietnam. Our results also indicate that some traditional drivers of FLFP (such as fertility rate, health status, female adolescents out of secondary school, government education spending, and standard of living) became more (or less) important as Vietnam became more economically integrated.

Does government education expenditure boost intergenerational mobility? Evidence from China

This article assesses the relationship between government education spending and intergenerational mobility using parent-child pair information from the China Family Panel Studies (CFPS) and data on government education expenditure from the China Educational Finance Statistical Yearbook, Provincial Statistical Yearbook and China City Statistical Yearbook. We introduced family classification (chengfen) as the instrumental variable for permanent income and used child income for the age bracket 23–40 as the approximation for lifetime earnings to minimize estimation bias. We found that the intergenerational elasticity in China is about 0.384 and the government education expenditure boosted the intergenerational mobility. Moreover, we estimated the absolute mobility in China. And our analysis pointed to the importance of government spending in increasing the intergenerational mobility of underdeveloped family and improving equality of opportunity in China.