Public Education Expenditures Research Articles

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

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.

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.

Public Education Expenditure, Human Capital Development and Economic Growth in Nigeria

Public Education Expenditure, Human Capital Development and Economic Growth in Nigeria

Public education expenditures, growth and income inequality

This paper analyzes the relationship between public education spending, long-run growth and income inequality. We propose an endogenous growth model with occupational choice and an endogenous supply of teachers and education quality. We show that endogenous school quality alters the shape of those relationships in a way that has new policy implications. First, growth depends on the level of public education expenditures and on the shape of the human capital distribution. Second, the relationship between public education and inequality can be either positive or negative. Calibrating our model to US state data, we find that a significant share of states faces a trade-off between increasing growth and decreasing inequality through public education spending. We find that this trade-off is overall more likely in states with higher public education expenditures, teacher employment share and relative wage, and intergenerational mobility. Finally, the existence of such a trade-off depends on how public education spending is financed.

Analysis of the efficiency of state public expenditure in education and health: the brazilian case after the fiscal responsibility law

The aim of this work was to verify the technical efficiency (i.e., if it is possible use the minimum quantity of inputs required to produce the desired output quantity, given the available technology) of the Brazilian states in relation to public expenditure on health and education after the implementation of the Fiscal Responsibility Law (LRF). For this, a parametric model of stochastic frontier estimation of production and the decomposition of the variation of technical efficiency (VTE) and technological variation by means of the Malmquist index for the Brazilian states were used. Input indicators (expenditure on health and education per capita) were obtained from the National Treasury Secretariat of the Ministry of Finance (Secretaria do Tesouro Nacional/Ministério da Fazenda). Data for output and outcomes in the health area were obtained from Datasus. The data for output and outcomes in the education area were obtained from Ipeadata. The data period is from 2001 to 2012. The results show that, in relation to education expenditures, there is a positive and statistically significant relationship between spending on education per capita and approval rate in secondary education. Regarding the health area, the results show that health expenditures per capita presented a statistically significant and negative relationship with the infant mortality rate in the respective Brazilian states. In relation to the decomposition of the VTE and technological variation through the Malmquist index, all states, both in education and in health, were below the technical efficiency frontier. It should be noted that most of the analyses already carried out of this kind in Brazil focus on the technical efficiency of only the health sector or the education sector separately, while this present work aims to deal with the efficiency of the two sectors.

Public expenditure in education at all levels (primary, secondary, and higher) in Bhutan: A critical analysis

This critical analysis delves into the allocation and utilization of public expenditure in education across all levels in Bhutan, including primary, secondary, and higher education. The study aims to provide valuable insights into how public funds are distributed and used within Bhutan's education system. By conducting this analysis, we seek to identify strengths, weaknesses, and areas for improvement in education funding and policy-making to enhance the overall effectiveness of public investment in education for the betterment of Bhutan's educational system and its citizens. The research employs a secondary data research method, allowing for an in-depth analysis of extensive datasets without the need for primary data collection. This method ensures efficiency and enables researchers to gain valuable insights into the education system and its funding. In 2015, public expenditure on education accounted for 25.5% of the total government expenditure in Bhutan. This marked a substantial increase from the previous year's figure of 17%. This is a positive trend that indicates a growing commitment to education. Expenditure in primary education increased significantly, rising from 32% in the previous year to 57% in 2015. This highlights the government's emphasis on foundational education, which is crucial for building a strong educational base. Expenditure per student in secondary education showed fluctuations, with a figure of 53.9% in 2014. However, there was an overall upward trend in expenditure per student from 1971 to 2014. This suggests that while secondary education is receiving attention, there may be room for more consistent funding. Tertiary education received 10.3% of the expenditure in 2014, although there were fluctuations in funding over the years. Ensuring adequate funding for tertiary education is crucial, as it plays a vital role in producing a skilled workforce that can contribute significantly to the nation's development. The analysis reveals that public spending on education as a percentage of GDP experienced fluctuations, with some years witnessing significant increases or decreases. Consistent education funding is vital for Bhutan's socioeconomic progress. This analysis emphasizes the need for stable investment in primary, secondary, and tertiary education. It highlights the evolving budget priorities and underscores education's critical role in Bhutan's development. Policymakers should use these findings toensuresustained and balanced education investment forlong-termprosperity.

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.

Impact of “expanding powers and strengthening counties” reform on basic public education services: Empirical evidence from Sichuan, China

The quality of a country's education system is both an indicator of its present level of development and a predictor of future economic advancement. This study intended to explore the impact of the “expanding power and strengthening counties” reform on the supply of basic public education resources. A combination of qualitative and quantitative methods was used to analyze the panel data of 114 counties in Sichuan Province from 2005 to 2017, including 78 counties with expanded powers. The study found that the “expanded power strong counties (EPSC)" had a significant positive impact on the supply level of funding resources measured by per capita public education expenditure. The time effect of the EPSC on the supply of teacher resources for county public education was manifested as a sharp increase in the supply level in the three years before the reform. The supply level tended to be stable after four years of reform. The economic resources supply level was relatively stable in the first three years and rose sharply after four years. There was a downward trend after the reform for 8 years. The structural effect has shown a more significant incentive effect on the supply of public education resources to strong and weak counties. But compared with the weak counties with lower economic development levels, the strong counties with higher economic development levels have a more noticeable effect of their decentralization reform on improving the supply level of public education resources.

Intergenerational Conflict between Young and Old on Public Education Spending: A Revisit

The intergenerational conflict over public education allocation has remained to be a subject of contentious debate. As such, this study aimed to examine the impact of the elderly population and young population growth that could potentially affect educational spending within the context of Malaysia. This study will employ the Autoregressive Distributed Lag (ARDL) method to determine the intergenerational conflict on public education expenditure in Malaysia. The empirical finding from this study demonstrated the significant influence of both the elderly and young population on public education spending. Any increase in the young population was followed by a proportional increase in education expenditure. Meanwhile, the increase in the elderly population does not appear to reduce public education spending. This implied that there is intergenerational conflict which would put pressure on public education spending. The changes in population structure could bring implications as to how the public expenditure will be allocated. The evidence from this paper will further provide useful insight and policy recommendations to policymakers on how to improve education financing in the future.

Immigration vs. poverty: Causal impact on demand for redistribution in a survey experiment

We investigate how demand for both the financing and the provision of redistributive policies is affected by information about immigration and poverty. Information about immigration has a positive impact on desired tax progressivity among low-income respondents and a negative one among higher income earners. Information about poverty has no impact. On the provision side, middle- and high-income respondents increase desired public education expenditure in response to poverty, while low-income respondents reduce desired education spending in response to immigration. These heterogeneities are consistent with protectionist reactions to immigration and poverty.