Public Investment In Education Research Articles

Public Education Investment, Economic Growth and Welfare: A Political Economy Analysis with Preference Heterogeneity

This study examines the politics of public education policy and its impact on economic growth and welfare under intergenerational altruism. The study considers an endogenous growth model with altruistic overlapping generations. Due to its significant role in promoting long-term economic expansion, we consider investment in public education to be an effective tool of productive government intervention. Nonetheless, public educational investment has been the subject of political disputes owing to its inherent intergenerational redistributive implications. Backed by the tendency of democratically elected governments to maintain their political power, the preferences of some particular individuals or group of individuals become more dominant in the political process of determining the level of public investment in education. In particular, governments are more concerned with the preferences of the median voter, or the current generation at large, because they, as electors, have the ability to determine the next government. This reality leads governments to exhibit a bias toward the desires of these people. As a result, such political considerations divert the economy from its optimal path of economic growth and reduce the welfare of future generations. This effect becomes more pronounced when individuals with lower levels of altruism toward their offspring assume a more influential position in the political decision-making process over the allocation of public funds for education. Our theoretical analyses demonstrate the implications for economic growth and welfare resulting from policy decisions made by democratically elected governments with inherent biases, as opposed to decisions made by an unbiased social planner.

Efficiency of public investment in education in Peru, 2016-2022: A comparative analysis by region

The study analyzes the level of technical efficiency of public investment in Education at the primary and secondary level in Peru, 2016 to 2022. Data envelopment analysis – DEA was used and for the association between the provision of resources and educational quality. the panel data fixed effects model. The results indicate that there are relative differences in efficiency between the regions, registering an average score of 49% for the primary level and 38% for the secondary level, with the most efficient being Moquegua, Tacna, Arequipa and Ica, and the least efficient being Loreto, Huánuco, Ucayali, and San Martín. From the input-output association, classroom size, infrastructure in good condition and public investment have a direct relationship, while students per teacher and per computer, the relationship is inverse with respect to educational achievement in communication and mathematics at the primary and secondary level. This suggests that inefficient regions should increase educational attainment at the primary and secondary levels by an average of 51% and 62%, respectively, while maintaining the same level of spending. Therefore, to improve their efficiency within the framework of public policies, they can adopt the management implemented by regions such as Moquegua and Tacna.

Assessment in the efficiency of investments in human capital in the conditions of digital transformation of the economy

The article considers the concept of “investment in human capital”, presents a theoretical and instrumental interpretation of the main components of human capital. The current assessment methods and indicators that characterize the effectiveness of investments in human capital are summarized. Also, a comprehensive and critical analysis of the current methodological aspects for assessing the effectiveness of investments in human capital was made. Education is considered as a property in the form of professional features and self-growing value on the basis of increasing labour productivity of an employee, which is correspondingly distinguished by the growth of wages. Creation of the methodology for assessing the economic efficiency of investments in education at the macroeconomic level is based on the comparison of public investments in education and average wages in the country. The average wage is considered as a productive indicator of the effectiveness of investments in education. The money that is spent on the education of the younger generation, in the foreseeable future will establish the degree of education of the population of the state and, in turn, its competitive advantage in the global community. The proposed model for assessing the effectiveness of investment in education is simple and convenient, it is able to link the efficiency of the firm's activities and the cost of human capital. The article shows the results of the assessment of investment efficiency of the implementation of the State Programme of Education and Science Development of RK for 2020–2025. The analysis of statistical data for Kazakhstan also shows the existence of a close relationship between the remuneration of employees and the volume of investment in education. The article has both theoretical and practical relevance, as it is related to the State Programme “Digital Kazakhstan” with the direction “Human Capital Development” and the topic is in relevant.

Human Resource Management Challenges In The Tourism Industry In Iraq

As Iraq aims to develop its tourism industry to support economic growth following the conflict, a key question arises regarding the workforce needed to enable sustainable sector expansion. This paper explores the unique human resource management (HRM) challenges tourism companies face in this fledgling context through a qualitative study. Semi-structured interviews with eight HR executives from major hospitality firms revealed four major problem themes: recruiting skilled talent, excessive turnover, safety and well-being risks, and inadequate training infrastructure. The findings align with strategic HRM theory in that shortfalls in acquiring, motivating, protecting, and developing human capital obstruct the achievement of organizational growth, productivity, service quality, and continuity goals. Practical implications point to increasing public and private investments in formal tourism education, safety standards, and company-level development programs as priority actions to remedy crippling HRM constraints for the emerging Iraqi tourism sector. The paper spotlights an underexplored yet critically important HRM context, providing empirical insights to inform policies and practices that can unlock the sector's potential.

How public education investment and advanced human capital structure affect regional innovation: A spatial econometric analysis from the perspective of innovation value chain

This research delves into the impact of public education investment and advanced human capital structure on the innovation outputs at various processes of China's regional innovation value chains. Utilizing the spatial Dubin model, the study analyzes panel data from 30 provinces spanning from 2002 to 2020, distinguishing between the Research and Development (R&D) and Commercialization sub-processes in regional innovation. It reveals that public education investment significantly boosts R&D output directly and also positively influences commercialization output through spillover effects. This trend remains consistent over time. The study also uncovers regional variations in the effects of public education investment on innovation outputs between China's eastern regions and its central-western counterparts. This study does not find any evidence that public education investment leads to local advanced human capital structure. In terms of direct impacts, there appears to be a substitution effect between public education investment and the advanced human capital structure on local R&D outputs, while a more advanced human capital structure tends to negatively correlate with local commercialization outputs. Notably, the study indicates that the higher the level of advanced human capital structure, the more pronounced the negative impact of public education investment on local commercialization outputs. In light of the above findings, we believe that governments should increase public investment in education, but also recognize that investment alone is not enough. It is necessary to transform the education development model and establish a high-quality innovation system. Differentiated strategies for different regions should be implemented, and an appropriate investment compensation mechanism should be established to solve the problem of uneven investment returns. We also do not recommend blindly pursuing the advanced human capital structure. Only when investment in education is in line with the human capital structure will it produce the best results.

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.

COGNITIVE MISPERCEPTION, DISABILITY, AND MORTALITY AMONG OLDER ADULTS IN 25 COUNTRIES

Abstract Despite a large body of literature on cognitive ability and health, less is known about the health consequences of biased cognitive perception. Using harmonized and nationally representative longitudinal surveys from 25 countries spanning Asia, Europe and the Americas, we document the growing gap between actual and perceived cognitive ability that appears to increase with age, and construct a standardized measure of cognitive misperception. Linking this novel measure with mortality and disability, we model the cognitive misperception – health gradient. Results show that being in the upper quartile of cognitive misperception (i.e., showing heightened overconfidence in cognition) leads to higher mortality rates within 1 year, 3 years, and 5 years. Conditional on survival, being overconfident in cognition also greatly increases the risks of incident disability and frailty, especially for older adults receiving less family support. We identify two possible pathways inducing poorer outcomes: the first stemming from increased risk taking and financial vulnerability; the second associated with suboptimal use of preventive services and declines in health-promoting behaviors. Given the large and profound impacts of cognitive misperception on older adults’ health and well-being, more family and social supports, public investment in education and health literacy, and better healthcare access and affordability are needed to increase the timely awareness of cognitive decline.

Grads on the go: Measuring college‐specific labor markets for graduates

AbstractThis paper introduces a new measure of the labor markets served by colleges and universities across the United States. About 50% of recent college graduates are living and working in the metro area nearest the institution they attended, with this figure climbing to 67% in‐state. The geographic dispersion of alumni is more than twice as great for highly selective 4‐year institutions as for 2‐year institutions. However, more than one quarter of 2‐year institutions disperse alumni more diversely than the average public 4‐year institution. In one application of these data, we find that the average strength of the labor market to which a college sends its graduates predicts college‐specific intergenerational economic mobility. In a second application, we quantify the extent of “brain drain” across areas and illustrate the importance of considering migration patterns of college graduates when estimating the social return on public investment in higher education.

Governmental Investments statistic and tourism at the Balkans

The Balkan region has proved to be a controversial territory. Through a long history and many controversies, the area rose to a popular destination. Common and uncommon elements make it a unique destination. Tourism has provided a sustainable source of revenue, as in every destination. Public investments are an important element of every activity to flourish and to bring private investments. Through public investments in infrastructure, superstructure, and education, we can provide a better tourist experience. In our paper, we discuss 5 countries of the region, Greece, Serbia, Bulgaria, Montenegro, and the Republic of North Macedonia. All of these destinations drew the attention of other countries and investment institutions like China and Russia. To take a look at public investments and tourism development, we compare core national accounts like the Gross Domestic Product (G.D.P.), Gross Capital Formation (G.C.F.), Gross Fixed Capital Formation (G.F.C.F.), and the inbound tourism at under investigation countries. Data indicate that there was a slowdown in each country’s economy during COVID-19 but then the production increased (Gross Domestic Product (GDP)). The Gross Capital Formation (G.C.F.) has a stable rate for the first years and then increases for each country. Data for the Gross Capital Formation (G.C.F.) for the tourism industry exist only for Bulgaria and show a decrease and a negative Gross Capital Formation (G.C.F.) indication that assets must have been sold. Data for the Gross Capital Formation (G.C.F.) for the transport equipment and total construction have fluctuations without extreme increases or decreases, showing a stable rate of asset accumulation. The findings from the research conclude that till COVID-19 all the economies had a stable rate of growth, and the decrease in tourism activity had a small impact on the decrease of Gross Domestic Product (GDP), except Bulgaria all the other economies slowed down during COVID era, Gross Fixed Capital Formation (G.F.C.F.) for Montenegro and North Macedonia remained stable for the period under study in contrast of the rest countries that were exhibiting a rise from time to time, the general Gross Capital Formation (G.C.F.) accounts always indicate growth in contrast to sectional accounts as they the total accumulated investments or production. Finally, there is insufficient data for the Gross Fixed Capital Formation (G.F.C.F.) for hospitality and tourism which does not allow the researchers to make any assumption with robust data for either the investments or the capital that occurred in other to be invested in the future.

Plastic Waste Regime in Rwanda, Kenya and South Africa: A Comparative Case Study

Purpose: Plastic waste has become a major environmental concern worldwide, posing significant challenges to ecosystems, human health, and sustainable development. This case study explores the plastic waste regimes in three African countries: Rwanda, Kenya and South Africa. By examining these countries' policies, strategies, and initiatives, the study aims to highlight their approaches to managing plastic waste and draw lessons for effective waste management practices.
 Methodology: The case study utilises a comparative analysis framework to identify similarities and differences in the plastic waste regimes of the three countries. It examines the regulatory frameworks, waste management infrastructure, public awareness campaigns, and recycling initiatives implemented in each country.Furthermore, the study delves into plastic waste's socio-economic and environmental impacts and evaluates the effectiveness of the measures taken to address the issue.
 Findings: Findings demonstrate that Kenya, Rwanda, and South Africa have adopted diverse strategies to tackle plastic waste. Rwanda has established a comprehensive waste management system emphasising recycling and community engagement, while Kenya has implemented a ban on plastic bags. South Africa, on the other hand, has embraced extended producer responsibility and developed a recycling infrastructure. These strategies have led to varying degrees of success in reducing plastic waste and promoting sustainable practices. An examination of the challenges faced by each country revealed factors such as inadequate waste infrastructure, limited resources, and the need for behavioural change among citizens. It also identified the role of stakeholders, including government agencies, non-governmental organizations, and the private sector, in driving plastic waste management initiatives.
 Recommendations: Finally, relying on the substantive legitimacy theory, the study provides recommendations based on the acceptability of the policies and best practices observed in the case countries. These include investment in waste management infrastructure, public education and awareness campaigns, and stakeholder collaboration. Countries can effectively address the plastic waste challenge by adopting an integrated approach that combines policy interventions, infrastructure development, and behavioural change. Overall, this case study contributes to the understanding of plastic waste management in Rwanda, Kenya and South Africa, shedding light on successful strategies and areas for improvement. It emphasises the importance of a holistic and collaborative approach to create sustainable plastic waste regimes that protect the environment, promote circular economy principles, and safeguard public health.

The Democratic Mission of Higher Education: A Review Essay

Abstract Controversies about speech on college campuses attract intense popular attention. Three recent books analyze campus speech as one of the ways that academia affects American democracy. In The Channels of Student Activism, Amy J. Binder and Jeffrey L. Kidder argue that college-student activists respond to incentives. Progressive students have opportunities to engage closely with their universities but often end up frustrated, while conservative students get support from national organizations to work off-campus and endorse conservative visiting speakers as a way of influencing their own institutions. Among other recommendations, Binder and Kidder suggest that universities should promote democratic values by adopting more persuasive positions about controversial speech. In Cancel Wars, Sigal-Ben Porath defends one such position: universities should avoid censorship and punitive responses to speech while actively ensuring that all members of their community are valued. In What Universities Owe Democracy, Johns Hopkins University President Ronald J. Daniels argues that higher education affects democracy in many ways beyond explicit political speech, and he presents recommendations that involve admissions, curricular reform, and research. Levine finds many helpful insights and suggestions in these books but adds reasons to doubt the democratic potential of prestigious colleges and universities. He advocates serious public investment in democratic education for children and for adults who are not students.

Skills mismatches in Cambodian higher education: Major causes and possible solutions

Higher education in Cambodia has made noteworthy strides in recent years. However, as the country experiences rapidly evolving economic needs and technological advancements, the mismatch between the skills graduates possess and those demanded by the job market remains a focal point of discussion. This article aims to discuss the issue of skills mismatches in higher education in Cambodia. It provides an understanding of skills mismatches in Cambodian higher education and delves into the major causes of this pressing issue, including limited public investment in higher education, limited involvement of concerned stakeholders, limited use of up-to-date curricula and teaching methods, limited English proficiency, lack of career guidance for students, and a low level of research engagement among Cambodian academics. The article offers solutions to address this pressing issue by emphasizing potential measures, such as providing sufficient orientation to students on the selection of majors in higher education, enhancing government-university-industry linkages, establishing a clear roadmap for improving higher education quality, modernizing curricula and teaching methods, encouraging learner autonomy and a culture of lifelong learning, promoting diversity and inclusion in higher education, enhancing the circulation of information about the job market and industrial needs, and improving the quality and research capacity of faculty members. The article argues that addressing skills mismatches in Cambodian higher education requires a genuine reform and concerted efforts from all concerned stakeholders. It concludes with suggestions for future research.

Public Investment in Short-Cycle Tertiary Vocational Education: Historical, Longitudinal, and Fixed-Effects Analyses of Developed and Less-Developed Countries

We use three analytic steps to examine public investment in short-cycle tertiary education. First, reviewing the historical development, the literature reveals that national and regional policies on educational development emphasized bachelor’s programs in vocational education in the early twenty-first century, especially in the EU. This historical background informs the longitudinal trend analysis in the second step of the educational and public investment variables (2000–2018) in our econometric analysis. The combined descriptive studies illuminate competitive advantages for EU and ASEAN nations in networks emphasizing open economic and academic exchange. Third, the fixed-effects analysis indicates a higher level of investment in general tertiary education per student, associated with a lower enrollment level in short-cycle vocational and technical tertiary programs. Using insights from this three-step process, we explore the implications of a nation’s capacity to invest in short-cycle tertiary programs as part of economic development and the pursuit of social equity within and across countries. Specifically, we conclude that short-cycle programs are a step toward integrating vocational education into programs in polytechnics and other higher education institutions.

Public Spending and Financial Inclusion and Their Impact on Inclusive Growth In Indonesia: A Spatial Approach

Inclusive growth results in equal access to the benefits of growth and, by that, reduces disparities. Public spending plays an important role in supporting economic growth and people's welfare. On the other hand, financial inclusion has the ability to expand opportunities to participate in growth. Using data on government spending and financial inclusion in 34 provinces in Indonesia in 2015-2019, this study aims to examine the link between the two towards inclusive growth. As a result, spending on education and financial inclusion, as well as investment and trade openness, can promote inclusive growth. Expanding access to education as a result of public investment in education will boost labor capacity and productivity. Meanwhile, access to more affordable credit will be realized through an inclusive financial system. Conversely, due to health development gaps, health spending has a negative impact on inclusive growth. The spatial error model with queen contiguity spatial weight matrix shows a significant spatial effect on the error term or residual. The implication is that policies for expanding education, health, and digital access as well as increasing investment and financial literacy need to be carried out to ensure people's affordability to economic opportunities by considering regional aspects.

Efficiency of Public Investments in Education and Economic Growth in the CEMAC

Efficiency of Public Investments in Education and Economic Growth in the CEMAC

Factors Affecting the Rate of Child Dropout from Multiple Angles

The research background of this study is based on the phenomenon of children out of school worldwide. In the 21st century when the economy is highly developed, the problem of children out of school still exists. In order to protect children's right to education, it is of great significance to reduce the rate of children out of school. The research theme of this study is "Factors affecting the rate of child dropout from multiple perspectives", and the main research methods are literature analysis, comparative analysis and statistical analysis. The results show that the country's economic level, education expenditure and the proportion of public education investment all have a significant impact on the child dropout rate, and the child dropout rate is significantly correlated with it, while gender has no significant impact on the child dropout rate, and the child dropout rate is higher in poor areas, and the lack of education investment seriously affects the improvement of the level of education development and the popularization of compulsory education. The conclusion of this study is that implementing the compulsory education system and increasing the economic investment in the field of education can reduce the dropout rate of children and protect children's right to education.

Uranium and the Macro-Economy in Niger: An Empirical Investigation

Like many commodities, uranium price is notoriously volatile, and such volatility can have serious economic consequences for countries that export them. Niger, which is the fourth-largest producer of uranium in the world, has been dealing with uranium price fluctuations since the start of its production in 1972. Since 2011, Niger is also an oil-exporting country. However, Niger is still one of the poorest countries in the world, and policymakers are keen on learning the impact of natural resource revenue on the economy. Policymakers are particularly interested in knowing whether uranium export has been a curse instead of a blessing. As such, the present study seeks to analyze, empirically, the impact of uranium price fluctuations on key macroeconomic variables in Niger. More precisely, the objective of this article is to document the existence of Dutch "disease" or lack thereof in the economy. The study uses VAR and VECM methodologies and utilizes Granger causality tests, variance decomposition, and impulse response functions to guide the analysis. These approaches allow for an empirical deeper dive into the impact of the uranium sector on the economy. The article uses annual time series data covering the period from 1977 to 2015. The data comes from three main sources, including the World Development Indicators (WDI) database, the Central Bank of West African Countries dataset (EDEN), and Niger's National Institute of Statistics (INS) dataset. The results show that Niger's economy suffered from Dutch disease from uranium export. Indeed, the Granger causality tests show that uranium export revenue cannot be used to forecast real income in Niger. Furthermore, impulse response functions confirm the above result as a shock to uranium price and the resultant effects on money supply, inflation, and the real exchange rate is consistent with the Dutch "disease" theory. In general, uranium export revenue was the source of macroeconomic imbalances observed in the country during the period considered by the study. Now that Niger is also an exporter of oil in addition to uranium, policymakers should avoid the trap of Dutch "disease" by investing natural resources revenue strategically. Given Niger's development challenges, using natural resources revenue for public investment in infrastructure, health, and education should be a priority.

Can impoverished family nurture rich sons any more? The effect of household income on intergenerational transmission of education: Evidence from China.

Family investment in education is an important variable influencing the educational attainment of children. Family investment in education is influenced by family income, and the increase in family income gap will aggravate the inequity of education and enhance the degree of intergenerational transmission of education. But the above theories need to be further tested in reality. This paper uses the 2018 China Family Panel Studies (CFPS) to verify the role of Chinese family income on intergenerational transmission of education through the education transition matrix and the mediating effect model, and examines the effect of college expansion policy on the mediating effect of family income on intergenerational transmission of education. The results show that: (1) The education level of parents has obvious transmissibility to the education level of children. The solidification rate of intergenerational transmission of education between parents and children is 25.72%, the upward mobility rate is 60.58% and the downward mobility rate is 13.70%. (2) The mediating effect model shows that the total effect of the parents' education level on children's education level is 0.279 and the direct effect is 0.272, and the family income plays a mediating effect in the intergenerational transmission of education, and the mediating degree reaches about 2.6%. (3) The expansion of higher education provides more opportunities for children of society, especially lower-middle-income families, to receive higher education, which weakens the mediating effect of family income in the intergenerational transmission of education. The findings of this paper provide support for policymakers to increase public investment in education.

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.

Public investment and human capital with segmented labour markets

Abstract We develop a dynamic general equilibrium macroeconomic model with segmented labour markets and efficiency wages to examine how labour market structures influence the impact of human capital investment in low-income countries. For plausible calibration values, public investment in education is much more effective than infrastructure investment in promoting long-run economic development, but because investment in education affects labour productivity with a lag, policymakers face an intertemporal trade-off which depends on their social discount rate and the weight of distributional objectives in the social welfare function. We show the distortionary structure of labour markets matters in leveraging welfare gains from public investment and in shifting the optimal public investment programme further in favour of human capital, relative to the case of flex-wage full-employment labour markets.