Public Education Expenditures Research Articles

Economic Growth Model with Fertility Incentives: A Theoretical Analysis Framework and Policy Simulation for China

This study presents an overlapping generation model to examine the impact of fertility incentive policies on economic growth in China, incorporating endogenous fertility, education, and technological advancement by integrating unified growth theory with an R&D-based growth model. We analyze the impact of fertility incentive policies on economic growth by evaluating maternity insurance and public education. The results show that increasing the actual contribution rate of maternity insurance, maternity benefits, and public education expenditures can boost China’s fertility rate; nevertheless, extending maternity leave would not incentivize an increase in the fertility rate. The impact of fertility incentives on economic growth is ambiguous, depending upon the extent to which increased fertility dilutes aggregate human capital via technical advancement. If the dilution effect is weak, the sign will turn positive, and vice versa. The simulation analysis of the benchmark model indicates that the fertility incentive policy, which encompasses increasing the actual contribution rate of maternity insurance, maternity benefits, and public education expenditure, can foster economic growth in China by enhancing the fertility rate in the long term.

Confucian culture, public education expenditure, and economic growth

Confucian culture has been found to have significant effects on economic outcomes, yet current studies seldom delve into its impact on regional economic growth in China and the role of government behavior as a mechanism. From the perspective of government response to public demands for education, this paper examines whether Confucian culture fosters economic growth by driving up public education expenditure. Using panel data at the prefecture-level over 2003–2018 and taking the historical population density of jinshi in the Ming and Qing Dynasties as the proxy of the Confucian culture, the empirical analysis is done mainly through pooled OLS and IV analysis. Results show that Confucian culture has a significant and positive effect on economic growth, which can be partially explained by its positive influence on public education expenditure. The channel still holds after controlling human capital in regression. Further discussion of the clan culture and local governors’ cultural backgrounds suggests that higher public education expenditure results from the local government’s passive response to public demands for education. Thus, local governments are suggested to widen and improve the channels for expressing public demands and increase public education expenditure while balancing public demands and the need to boost economic growth.

Teenage childbearing and the welfare state

Abstract Teenage childbearing is a common incident in developed countries. However, teenage births are much more likely in the USA than in any other industrialized country. Most of these births are delivered by female teenagers from low-income families. The hypothesis put forward here is that the welfare state (a set of redistributive institutions) has a significant influence on teenage childbearing behavior. We develop an economic theory of parental investments and the risky sexual behavior of teenagers. The model is estimated to fit stylized facts about income inequality, intergenerational mobility, and the sexual behavior of teenagers in the USA. The welfare state institutions are introduced via tax and public education expenditure functions derived from US data. In a quantitative experiment, we impose Norwegian taxes and education spending in the economic environment. The Norwegian welfare state institutions go a long way in explaining the differences in teenage birth rates between the USA and Norway.

Analysis of the Relationship between Public Debt Service and Education Expenditure: A Pooled Mean Group Approach

Analysis of the Relationship between Public Debt Service and Education Expenditure: A Pooled Mean Group Approach

Efficiency of Public Educational Expenditures in Nigerian Manufacturing Sector: A Data Envelopment Analysis

Efficient resource allocation plays an essential role in manufacturing productivity, with a need to assess expenditure efficiency before addressing the impact of education. Amidst global growth in education budgets, financial strain requires improved allocation with a focus on efficiency to mitigate deficits. The manufacturing sector in Nigeria has experienced a consistent decline in productivity and prolonged stagnation over the years, as well as a decrease in capacity utilization. Based on this premise, this study aims to examine the effect of public educational expenditure on the efficiency of resources used in the Nigerian manufacturing sector over the period 1981-2019. The Data Envelopment Analysis is used to estimate the efficiency scores for the years under examination. The results show that, within the DEA estimation of efficiency, public educational capital expenditure does not result in the efficient use of resources for the majority of years under investigation except for the year 2019; only 16 years on public educational recurrence expenditure showed constant returns, and no years showed a decreasing return to scale, compared to the year 1982. The inefficiencies in utilising resources are linked to scale inefficiencies, and the government should target public spending policy to increase the size of capital projects in the education sector.

The effect of education expenditure on air pollution: Evidence from China

Education expenditure is essential in mitigating air pollution, but the relationship between education expenditure and air pollution lacks in-depth discussion. Utilizing data at the county level in China during 2007–2021, this study estimates the effect of education expenditure from local governments on air pollution. Our findings demonstrate that education expenditure significantly and negatively affects air pollution, which remains robust after addressing endogeneity. The mechanism analysis presents that education expenditure reduces air pollution through the composition, technique, and income effects. The heterogeneity analysis indicates that the impact of education expenditure exhibits marked regional heterogeneity. Specifically, the role of education expenditure is significant in strong regulation, key, eastern, and central regions. By considering interaction terms, we identify the moderating effects of human capital, economic development, infrastructure construction, and public service for education expenditure. The cost-benefit analysis emphasizes that education expenditure improves social welfare. Our findings can inspire local governments to place more emphasis on air quality and public education expenditure.

Impact of Public Expenditure on Education in Chhattisgarh

This paper objective to investigate the correlation between public spending on education and the growth of the state of Chhattisgarh. Time-series data spanning from 2000 to 2021 was utilised. Public expenditure has several effects in economy. It can increase economic growth. It can increase social welfare. It is directly expected education is helps Positive Social change of citizen. The result shows that total public expenditure and Education expenditure is highly and statistically significant on economic growth indicator such as GER and DOR in primary level in Chhattisgarh.Public expenditure helps in achieving equitable distribution income and promote growth and welfare. The findings indicate that total public spending and education spending have a statistically significant and positive impact on economic growth indicators like the state's Gross Enrollment Ratio (GER) and the percentage of primary school dropout children (DOR) at the primary level. Education is directly expected to contribute to citizens' positive social transformation. The study's findings show that public spending on education and economic growth are correlated over the long term. Over time, there is a found unidirectional causal relationship between public education spending and Gross State Domestic Product (GSDP).

Impact of Health Investment on Economic Development in Nigeria

This study examined the impact of health investment on economic development in Nigeria. Using secondary data sourced from Central Bank of Nigeria Statistical Bulletins and World Bank development indicators, World Bank Database for the period of 1981- 2020. It applied Augmented Dickey Fuller (ADF) and Philips-Perron (PP) tests for unit root which indicated that all the variables were stationary at first difference except gross fixed capital formation at level. The mixed order of the unit root tests necessitated the adoption of Autoregressive Distributed Lag (ARDL) bounds Cointegration technique. The study submitted that a strong evidence of cointegration among the variables exist. It prove that health investment variables (recurrent and capital health investment, public education expenditure, gross fixed capital formation and labour participation rate) have positive impacts on economic development in Nigeria except foreign exchange rate which reveals negative impact. The result of Pairwise Granger causality test indicated that there were uni-directional and bidirectional causality among health investment variables and economic development in Nigeria. Therefore, it concluded that health investment variables have positive and significant impacts on economic development in Nigeria except exchange rate. Moreover, this study recommended that health policy should be made by government to increase the budgetary allocation to health sector particularly on recurrent and capital public health investment, improve quality of education through statutory allocation to education sector, provide exchange rate policy that will encourage investment in human capital by individuals and private sector. Finally, the government should expand institutional capacity to produce qualified manpower, improve personnel salaries, wages and working conditions in health and education sectors

Firm's emission reduction effectiveness and the influence of the five institutional dimensions of the quintuple helix model: European evidence

AbstractBased upon the quintuple helix model (QHM), this study explores whether the differences in firms' emission reduction effectiveness can be attributed to the five institutional helices related to educational system, economic development, political–legal system, cultural orientation, and the natural capital. Using a set of listed European firms for the 2015–2020 period, we show that firms with better emission reduction effectiveness operate in nations with more public educational expenditure and scientific production, more extensive economic development, and better institutional and governance quality. Moreover, emission reduction strategies are more pronounced in firms located in countries characterized by less masculinity, individualism, power distance, and uncertainty avoidance, and more long‐term orientation and indulgence. In addition, we find that companies with better emission reduction effectiveness are found in countries with more natural capital, characterized by a life in harmony with nature and employing the finite resources available in a sustainable and environmentally conscious manner. Moreover, employing a two‐stage model to identify the most relevant helix, we find that the political–legal system helix is the most pivotal in promoting firms' commitment to reducing environmental emissions.

Inclusive education, gender inequality and public expenditure in sub‐Saharan Africa

AbstractIn the contemporary literature, several studies have attempted to see the effect of gender inequality and public expenditure on inclusive education. However, few have attempted to determine the gender inequality threshold. In this study, we first examined the threshold of gender inequality which, when exceeded, the effect on inclusive education becomes negative. Second, we examined the effect of public expenditure on inclusive education in 17 countries in sub‐Saharan Africa, in the period from 2000 to 2019. The fixed‐effect panel data model was used. The following results have been established: (i) the gender inequality threshold from which the effect of gender inequality becomes negative on the gross enrolment rate is respectively established at 0.38 in primary and 0.37 in secondary. At the higher level, the effect of gender inequality is linear and negative on the gross enrolment rate; (ii) public expenditure on education has a positive and significant effect at the primary and secondary level on inclusive education. However, its effect at the higher level is negative. As implications, the results constitute and intermediate objective for the countries for the sub‐Saharan Africa which failing to achieve gender equality, would benefit from reducing inequality to 0.38 at primary level and 0.37 at secondary level. Secondary, education in order to cancel out the negative effect of gender inequality on gross enrolment rates at the primary and secondary level. Secondly, states must further consider public education expenditure as a relevant instrument for achieving SDG 4.

Are Public Investment and Education Expenditures Productive in the Argentine Case? A FMOLS and DOLS Analysis, 1960-2019

This paper examines whether public investment spending and public education expenditures (a proxy for human capital) in Argentina have a positive and significant effect on economic output and labor productivity for the 1960-2019 period. The paper estimates a simple model that incorporates the impact of public and private investment spending, education expenditures (including at the secondary level), and the labor force. It presents a modified empirical counterpart to the simple model and tests for unit roots and performs both a Johansen cointegration test and a Gregory and Hansen cointegration test with an endogenously determined regime shift. FMOLS and DOLS long-run estimates for the 1960-2019 period suggest that public and private investment spending, government education expenditures, and the labor force have a positive and significant effect on the level of economic output and labor productivity. For comparison purposes, both methodologies are used because these estimators are extremely consistent, particularly the DOLS estimator, even in the presence of both endogeneity and serial correlation of any order. The concluding section summarizes the major results and discusses potential avenues for future research on this important topic.

The Impact of Public Education Expenditure on the Urban-rural Income Distribution Gap: Based on the Moderating Effect of Local Government Debt

The Impact of Public Education Expenditure on the Urban-rural Income Distribution Gap: Based on the Moderating Effect of Local Government Debt

The Study on the Income Distribution Effect of Public Education Expenditure

The Study on the Income Distribution Effect of Public Education Expenditure

Public education expenditure and corporate human capital: Evidence from China

The coordinated development of public education spending, human capital accumulation, and economic growth is a prerequisite for the virtuous cycle of regional economic development. The research results indicate that provincial-level public education expenditure has a positive impact on corporate human capital expenditure, and this impact is more pronounced in the western regions and non-state-owned enterprises. Based on this, the Chinese government should establish a long-term mechanism to ensure a certain level of public education investment in the future.

Assessment of public education expenditure efficiency across Lithuanian municipalities

Abstract Efficiency of education expenditure is the ability to maximize the educational achievement given the resources invested. Although public education expenditure tends to increase, yet this does not necessarily guarantee high quality of education services. This study aims to assess public education expenditure efficiency of Lithuanian municipalities and to identify the factors explaining its variations. The study used data for 2013-2019 from 60 Lithuanian municipalities. Corrected Ordinary Least Squares method was employed for public education expenditure efficiency assessment and regression analysis was used to determine its influencing factors. Inputs included financial (public expenditure for education and maintenance) and nonfinancial (composition of teachers, occupied area, etc.) variables. Passing ratio of Lithuanian (national) language and math exams were used as efficiency outputs. The context variables represented environmental factors of educational achievements, such as number of business entities, users of social housing, libraries, and culture centres as well as municipalities’ overall financial autonomy. Results of the research are ambiguous. When assessed by the overall passing of the exams, the efficiency was high, scoring 86-90%. But when evaluated by passing exams with the highest scores, it did not even reach 40%. Two types of public expenditure were identified as the most influential factors - public expenditure for education with the negative trend, and municipality own financing with the positive influence on the public education expenditure efficiency. Such results support the decentralization of public education expenditure management and call for alternative output measures in the Lithuanian public education system.

Evolution of the Digital Economy and Society Index in the European Union: Α Socioeconomic Perspective

Abstract The rapid development of information and communication technologies (ICT) in recent years has brought about significant changes in many social sectors such as communication, economy, entertainment, and others. To define the key role that ICT plays in its development course, the European Union (EU) has developed a composite indicator, the Digital Economy and Society Index (DESI), to assess the digital policy performance of its Member States. In the current work, an attempt is made to evaluate the performance of the EU countries on the digital economy and society with respect to implemented EU digital policies by studying the five dimensions of the DESI for the years 2014–2019, using the corresponding DESI reports (DESI 2015 – DESI 2020). Moreover, the digital convergence among EU Member States, in terms of similarity of their performance in the five dimensions of the DESI by grouping them according to the optimal number of clusters, is also examined. Since the optimal number of clusters is two, EU Member States are classified in two groups, one of high and one of low performance in the five dimensions of the DESI. The evolution of each member country and the possible transitions from one group to another during the years 2014–2019 is also a point of interest. The grouping of EU Member States into the two clusters showed that socioeconomic factors may affect the overall DESI. Linear mixed effect models confirm the positive effect of Gross Domestic Product per capita, the public expenditure for education and research and development (R&D) on the DESI and the negative effect of the average number of weekly working hours. The results could be used to reform the existing EU digital policies and identify areas where further improvement is needed.

Education Informationization and Education Power: The Influence of Fintech on Educational Equity

Purpose Fintech provides material capital for educational investment and holds practical significance for achieving equity in education. Design/Approach/Methods Drawing on the indexes of fintech development and educational inequality, this study uses a variety of methods such as fixed effect models to explore the influence of fintech on education equity. Findings Results show that fintech can significantly advance educational equity, particularly in regions with lower levels of educational input, educational output, and economic development. Mechanism analysis reveals that fintech facilitates the sharing of educational resources through the application of digital financial platforms. It also drives the development of information technologies for education by promoting the creation of new infrastructure. Fintech can strengthen niche marketing and increase the use of financial services to narrow the digital divide, thereby reducing educational inequality. Moreover, fintech indirectly addresses educational inequality by increasing household income, household consumption, and public education expenditure. Originality/Value In the pursuit of educational equity, the positive influence of fintech should be harnessed by increasing investments in new infrastructure creation, advancing fintech e-learning platforms, and promoting the equal distribution of educational resources.

비교모형 기반의 고등교육재정 적정 규모 추정과 재정지원 확충 방안

The purpose of this study is to estimate the appropriate size of higher education financing based on the concept of education financing adequacy and to propose a policy realization plan to expand financial support based on special accounting for higher and lifelong education support.
 The results of the study show that the scale of domestic higher education financing is very low. Domestic total government expenditure, education budget, OECD public education expenditure per capita, and OECD higher education expenditure per capita as a percentage of GDP were all low. Second, the comparative model was applied to estimate the appropriate size of higher education financing, and the size of the required resources increased as the reference group for international competitiveness comparison was set. Third, the newly established special account for higher education finance is problematic in terms of the stability of revenues, the adequacy of revenue sources, and the feasibility of expenditure projects. In particular, there is no explicit provision for securing financial resources, and the special account is temporary, so it is necessary to revise the law and find a way to provide long-term financial support. Finally, in order to secure the estimated amount of financial resources needed in the future, it is proposed to link the direction of sharing between the state and the private sector with the government's plan and operate the fund in the long term.

Disparity in Education Expenditure and Economic Growth in India: An Analysis

Enhancing the educational achievements of the population has long been recognized as a crucial factor in driving economic growth, tracing back to the era of Adam Smith. Therefore, prioritizing the improvement of educational attainment is imperative for cultivating economic development. India is widely recognized for its alarmingly high number of individuals with limited access to education. The education system is characterized by a chaotic and disjointed combination of public and private institutions, lacking a viable mechanism to establish effective educational standards. The private sector, in particular, has displayed little capability in executing welfare programs aimed at improving education. So, the expenditure directed by Government towards education sector is recognised as an important input in the education production process which would ensure better educational outcomes. Economic growth is a wider concept where education expenditure plays an important role to boost the economy. It is just like fuel to economy. So, expenditure is at most required. Here the paper tries to examine the disparity in public education expenditure and economic growth. So, study has taken 14 major Indian states by grouping into forwarded states and backword states. It is observed that convergence growth performance of developed and backward region has been reducing of regional disparity in the country in terms of Per capita income and in terms of education expenditure it is also reducing. So we can go for nexus analysis between two variables.

Effects of public expenditure on education on gender inequality in education in sub‐Saharan Africa (SSA)

AbstractThe study examines the effect of public education expenditures on gender inequality in education in sub‐Saharan Africa. It covers 25 countries in sub‐Saharan Africa for the period 2010–2019. The generalised method of moments was used. The estimator developed by Blundell and Bond was chosen. The following results are found: (i) public expenditure on education has a positive effect on gender equality in education at the primary, secondary and tertiary levels; (ii) remittances have a negative effect on gender equality in education at the primary, secondary and tertiary levels; (iii) population growth has a negative effect on gender equality in education at the primary and tertiary levels, but at the secondary level, the effect is positive. The main political implication is that sub‐Saharan African countries must continue to invest in inclusive school to ensure gender equality, which remains a goal to be achieved in the region.