Education Spending Research Articles

The Paradox of Inequality: Factors Influencing Income Inequality in the Philippine Setting

In the Philippines, income inequality is one of the country's most serious issues. This study aims to look at some of the factors that influence income inequality in the Philippines; Educational spending, GDP per Capita, and tax revenue. These are the Philippine elements that have a significant impact on this study; On how citizens pay their taxes, the state of the country's GDP, and its educational priorities. The importance of these elements will be discussed in this study to eliminate income inequality in the Philippines and for every Filipino citizen to develop in their lives. Secondary data will be used ranging from 2000-2019. The results show that all independent variables are significant to each other, with an R-squared of 0.988. The results also show that GDP had the most significant relationship with Income inequality compared with the other variables.

DETERMINANTS OF CO2 EMISSION IN MERCOSUR: THE RULE OF INVESTMENT IN EDUCATION

The aim of this research was to assess the impact of the governmental expenses with Education on CO2 emission in countries from Mercosur and other associate ones. It included annual data related from 1990 to 2014, obtained from World Bank (world development Indicators), through an online database (http://data.worldbank.org). As proxy for pollutant emissions, we used the variable CO2, which represents the emission of carbon dioxide in metric tons per capita. Final sample comprised eight countries, four from Mercosur itself (Argentina, Brazil Paraguay and Uruguay) and four associate countries (Chile, Peru, Colombia and Ecuador) in a 25-years consecutive period. According to data, it wasn't possible to infer that government's outlays on Education does not impact on CO2 emission neither in Mercosur nor in associate countries, what also does not support our first hypothesis. On the other hand, segregation on Education outlays showed there is a negative and significant relation between governmental expenses in Education per student (from secondary and tertiary teaching) and the CO2 emission in the previously mentioned countries, supporting both second and third hypotheses of this research.

The Economy of Indonesia: Driven by Physical or Human Capital?

This study aims to analyze whether economic growth in Indonesia is driven by physical or human capital using panel data analysis consisting of all provinces over the last nine years. The estimation results show that the Indonesian economy is more likely to be driven by physical than human capital. The formation of human capital that has a significant positive effect on economic growth is health. However, the education variable represented by the mean years schooling has no significant effect on economic growth when including the control variable in the research model. To improve the quality of education, the state requires the government to provide substantial educational spending. However, the budget has not been used optimally so that the expected achievements of graduates are not achieved. In addition, education spending has not met the criteria for quality spending. In contrast to education spending, an increase in health spending will increase economic growth by improving the quality of health and life expectancy. A healthier society will have a high level of productivity that impacts the regional and national economy.

Crime, correction, education and welfare in the U.S. – What role does the government play?

As federal, state and local governments continue to allocate a significant share of their resources to law enforcement and correctional spending, concerns have risen that spending in education and welfare is declining. With fiscal pressure in the United States mounting, it is important to determine the effectiveness of public spending in deterring crime. This paper compares the effectiveness of the impact of government spending on welfare and education with that of law enforcement and correction on crime. Using panel data from 50 U.S. states over a time period of 1994–2014, results of linear regression with panel corrected standard errors as well as GMM estimation reveals that public welfare and education spending can potentially lower violent and property crime rates but law enforcement spending can only deter property crime. However, correctional spending can exacerbate both types of crimes. There is little to no evidence of the presence of crowding out of one category of spending by another. This results in the policy implication that more resources be allocated towards welfare and education programs.

The growth effects of knowledge-based technological change on Taiwan’s industry: A comparison of R&D and education level

This paper employs data envelopment analysis (DEA) and the Malmquist index (MI) to investigate the growth effects of knowledge-based technological change and technological efficiency change on the output of the industrial sector in Taiwan. The results reveal two main findings: First, due to the lack of knowledge-based scale efficiency, there is no improvement in knowledge-based technological efficiency during the period from 1997 to 2019. Although both the direction of the change in R&D expenditure per researcher and that in education spending time per worker can explain the knowledge-based technological efficiency change, the long-term average of the growth rate of technical efficiency change is negative; thus, the positive coefficient of the technical efficiency change to output growth still makes a negative contribution to the output growth. In other words, if the scale efficiency can be improved, the contribution of knowledge-based technological efficiency change to output growth can be reversed. Second, an increase in R&D expenditure per researcher is more important than an increase in education spending time per worker, especially in knowledge-based technological change. In addition, the results indicate that Taiwan’s economic growth driver mainly comes from technological change. The contribution of knowledge-based technological change to manufacturing output growth is close to 65%, especially in the last 20 years. Furthermore, both knowledge-based technological efficiency change and technological change have a positive and significant coefficient of output growth in the Taiwanese industry. Therefore, in addition to continuing to increase R&D to enhance the growth of technological change and facilitate the growth of output, if the contribution of technological efficiency change to output growth can be improved, Taiwan’s output growth will be more stable in the future. Overall, knowledge plays a key role in industrial growth and economic growth, and R&D promotes more direct growth than education in Taiwanese industry.

Ahmadov V.

This paper evaluates the financial policy of oil-exporting Azerbaijan in the recent oil boom and bust period. Analysis of fiscal policy evaluates the fiscal sustainability and efficiency of government spending to upgrade domestic economy. Monetary policy evaluation measures the effect of the exchange rate policy on competitiveness of non-oil economy and capacity of Azerbaijan government to sustain macroeconomic stability in the oil-shock period. The share of the oil revenue in government budget increased significantly, and budget spending is directed to physical investment while investment in human capital in the form of health, education and social spending lagged behind. Aside from currency crises in 2015, macroeconomic stability has been under control, but fixed exchange rate policy impeded the competitiveness of non-oil sector and caused Dutch disease.

Critical Response to "A Short History of K-12 Public School Spending in British Columbia"

In Issue 196 of the Canadian Journal of Educational Administration and Policy (CJEAP), the journal published an article by Jason Ellis, A Short History of K-12 Public School Spending in British Columbia, 1970-2020 that claimed “K-12 public education spending in British Columbia – adjusted for inflation – is 250 percent higher in 2020 than it was in 1970” (Ellis, 2021, p. 102). We illustrate how this claim lacks a theoretical framework, is based on weak data sources, a flawed research method and skewed analysis that results in a misleading understanding of resource allocations in BC. We present alternative ways to understand spending on education in BC in an effort to correct the scholarly and public record.

The Efficiency Analysis of Government Expenditure on Education and Health in Sumatra: The DEA Approach

The purposes of this study are to measure the level of the relative efficiency of educational spending and healthcare spending in achieving Mean Years of Schooling (MYS) and life expectancy at regency and city in Sumatera. Data Envelopment Analysis (DEA) were employed for a data set of the spending of 154 local governments in 2019 with an output-oriented model. The approach used is a variable return to scale. In measuring efficiency, two input were used are (i) Government spending of the educational function and (ii) Government spending of the healthcare function, while two output were used are (i) Mean Years of Schooling (MYS) and (ii) life expectancy. The results show that, of the 154 local governments, 6 across ten regency and city in Sumatra, were relatively efficient. There are Gunungsitoli, Bukit Tinggi, Padang Panjang, Solok, Banda Aceh and West Nias.

DIVERSIFICATION OF SOURCES OF FINANCING HIGHER EDUCATION: THE EXPERIENCE OF REFORM IN EUROPEAN COUNTRIES

The exacerbation of the shortage of financial resources in the current global challenges has necessitated increased efficiency in the financing of higher education institutions. Along with the increase in funding, diversification of sources and transformation of funding mechanisms for higher education systems have become topical issues. The study attempted to identify the internal structure of public funding for higher education in Europe concerning funding mechanisms. According to the results of clustering of European countries based on coverage of the population with higher education and public spending on higher education by one undergraduate, eight clusters were identified, four of which are unique and contain one country (Greece, Cyprus, Turkey, Luxembourg). Four other clusters cover countries with: incomplete public funding for higher education; state protectionism in the financing of higher education; specific forms of state funding for higher education; strategic state priority in financing higher education. The general patterns of financing higher education in European countries, the experience of expanding funding sources, efficient use of financial resources and granting autonomy to universities, which can be taken into account in the process of higher education reforms in countries with transformational economies.

Panel evidence from rural Uganda on mobile money, risk sharing, and educational investment

We investigate the influence of the rapidly developing mobile banking service "mobile money" on rural households' capacity to smooth their investment in education following a negative shock. We find that a negative shock reduces per school-age kid educational spending by 9.3 percentage points in families that do not utilize mobile money but by 8.3 percentage points in homes that have used mobile money. The underlying process is a rise in remittance receipts and sender variety as a result of the lower transaction costs afforded by mobile money. We demonstrate that our findings are resistant to alternative processes. We utilize the extension of the mobile money agent network as an exogenous variable in mobile money access.

Education policies and development with threshold human capital externalities

Historiacally, all countries have experienced economic stagnation without schooling until compulsory schooling was instituted. This study argues that a stable poverty trap exists at a low initial average human capital owing to a coordination failure to benefit from potential human capital externalities and empirically plausible decreasing returns to scale in education. When the average human capital exceeds a threshold, balanced growth can arise from empirically established human capital externalities for increasing returns to scale in production. Compulsory public education or education subsidization can reach the threshold human capital and escape the poverty trap. Appropriate subsidies on schooling time and education spending financed by labor income taxes can fully internalize the externalities.

Impacts on the efficiency of public expenditure in the fundamental education of São Paulo cities through the expenditure element categories

Purpose: This study aims to measure the impact of public spending on basic education in São Paulo cities on the efficiency of public educational expenditure.
 Method: The calculation of the efficiency is based on the Data Envelopment Analysis (DEA), having as input the public expenditures in education in the years 2014 to 2017 and output the municipal score of Prova Brasil 2017. The measurement of the impact of public expenditures on efficiency is based on the technique of Multiple Linear Regression (MLR) by Ordinary Least Squares (OLS), having as explanatory variables educational expenses classified as wages, purchases, travel, interest and permanent materials, and variable response efficiency index of public expenditure.
 Results: From the statistical models of MLR different regression coefficients were obtained, which estimate the change in the efficiency index of public expenditure when the expenditure is increased or withdrawn. The results expressed that there is a negative correlation between all categories of the expenditure element and the efficiency of public educational spending in the period from 2014 to 2017.
 Contributions of the Study: This study, in a pioneering way, adopts the budget accounting classification of the categories of the element of the expense, thus approaching the study of the efficiency of the closest possible object to which the classification of the expenditure refers.

КОРЕЛЯЦІЙНИЙ АНАЛІЗ СТІЙКОСТІ СОЦІАЛЬНО ОРІЄНТОВАНИХ ВИДАТКІВ ЗВЕДЕНОГО БЮДЖЕТУ УКРАЇНИ В УМОВАХ БЮДЖЕТНОЇ ДЕЦЕНТРАЛІЗАЦІЇ

The decentralization reform implemented in Ukraine since 2014, besides the administrative division and territorial governance transformation, has a considerable fiscal aspect. The 2015 amendments to The Budget Code of Ukraine have established direct bilateral relations between the budgets of central government and territorial communities, most often in their turn reconstituted as an amalgamation of diverse settlements. Equalization of disparities in territorial development, as well as spending optimization, were the primary concerns in the reform process, which resulted in establishment of specific budget transfer mechanisms, including the targeted subventions for education and public health (Art. 97 of the BCU), as well as horizontal equalization of taxability, constituted by the two-way transfers to or from particular communities depending on their dedicated tax income (Art. 98 of the BCU). The present escalation of military aggression towards Ukraine has introduced further territorial discontinuities into the fiscal system, ranging from physical destruction of communities to disproportionate fiscal burdens upon the refugee-welcoming regions. Furthermore, against the war-induced background of one of the deepest economic crises of the Ukrainian independence history, the resilience of socially oriented spending against macroeconomic shocks gains acute relevance. In this context, quarterly consolidated budget spending data provided by the National Bank of Ukraine, which includes total spending on both central governmental and community levels since 2011, despite the obvious limitations, overcome some obstacles to a preliminary efficiency assessment of the reform due to their abstraction from both the interbudgetary transfer mechanisms and the territorial structure. We employed a simple correlation analysis, using Fisher’s z-transformation, of the consolidated budget and GDP data, aimed at establishment of statistical significance of correlation breaks between the real GDP and a number of functional spending categories. The significance is established at the 95% confidence level for educational and social security spending series, which, together with the recent spending observations, testifies for a positive impact having occurred since 2015 upon the resilience of consolidated spending. While the effects may be explained on the macroeconomic level by the mentioned transfer mechanisms in place, this aggregated analysis needs further supportive evidence from the communities’ level.

ANALYSIS OF PATTERNS OF THE COVID-19 PANDEMIC IMPACT ON COMPONENTS OF NATIONAL SECURITY OF THE STATE

As a result of the spread of the COVID-19 pandemic, the activities of many production enterprises were suspended, many specialists lost their jobs, budgets at all levels received an additional burden due to the need for increased financial support for the normal functioning of health care institutions and medical personnel. All these destructive effects, individually and in combination, led to the deterioration of the level of national security of the countries of the world. Since in the scientific literature, national security is usually considered through the prism of social, economic and environmental security (which was confirmed with the help of bibliometric analysis using the Publish or Perish software product), these components of national security were chosen as the object of this study. The main task of the study is to empirically assess the extent of the destructive impact of the COVID-19 pandemic on the components of the national security of the state and to determine the pre-pandemic and pandemic patterns of their formation. In order to test the main hypothesis of the study about the large-scale destructive impact of the pandemic on the components of the national security of the state, the growth rates of each of the indicators of the quantitative assessment of the corresponding block of the component of the national security of the state in the pre-pandemic period (2019/2000) and the pandemic period (2021/2019) were calculated. This study was conducted for a sample of 7 European countries (Czech Republic, Hungary, Lithuania, Latvia, Poland, Romania, Ukraine). The assessment of the growth rate of the collected statistical indicators showed that among the determinants of social security during the outbreak of the pandemic, there was a decrease in the birth rate and life expectancy, an increase in the unemployment rate and mortality. Among the determinants of environmental security during the pandemic period, a decrease in CO2 emissions was recorded among all analyzed countries, except for Ukraine. The growth rates of alternative and nuclear energy and electricity generated from combustible renewable sources became incomparable due to their low relevance and prevalence at the beginning of the 20th century. Among the indicators of economic security, in most of the analyzed countries because of COVID-19 foreign direct investment and the level of public spending on education and military spending have significantly decreased, while the amount of current spending on health care has increased. The obtained empirical results based on the conducted statistical analysis mostly confirmed the hypothesis regarding the negative impact of the COVID-19 pandemic on the components of national security. The practical value of the obtained results lies in providing an informational basis for the development of short-, medium- and long-term policies that will pave the way for a strong and sustainable recovery of national security.

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.

The Funding of Education and The Country's Overall Economic Growth in Central Asia

This study aims to provide the groundwork for further investigations into the relationship between educational expenditures and economic growth. This investigation lends credence to earlier conclusions about the amount of money spent by the federal government on education. Both the state governments and the federal government make financial contributions to education; nevertheless, the federal government's planned and operational expenditures employ their resources in a distinct manner. Since our country has had terrible rankings for a number of years and has never even cracked the top ten, one of the most crucial concerns about the money that the government spends on education is: where does it go? This indicates that not enough human capital (HC), which is beneficial to the economy, the people, and the environment, is developed via education expenditure (ECNG). Through the use of EduEx, the purpose of this study was to establish a connection between ECNG and government education funding. According to the findings of this study, EduEx variables at all three levels of education (primary, secondary, and postsecondary) reveal a distinct cointegration link (as shown in the estimated Models 1 and 2). The years 1993 through 2017 are covered in this list of facts. The projected VECM indicates that the benefits of EDuEx operations and development education spending on ECNG won't become obvious for quite some time. According to the findings of this research, ECNG is impacted by the percentage of Uzbeks who have completed postsecondary education. The majority of Uzbekistan's working population has at least a bachelor's degree. The percentage of the working population that has at least some secondary education is unusually high
 

Government and Household Expenditure on Education: The Role of Credit Constraint

Human capital accumulation is one of the most important factors of economic growth for both developed and developing nations. The central research question of this paper is to evaluate the tendency of household educational spending vis-à-vis government spending on education, given the household’s credit constraints. For this purpose, use annual data of 40 countries from 2004 to 2018 in this paper. The intensity of government and household expenditures on education is a more appropriate indicator to analyze the impact of human capital on economic development. This paper has applied the Fixed effect and the random effect model. The Panel Corrected Standard error (PCSEs) model to tackle the problem of heteroscedasticity, Serial Correlation of AR (1), and Cross-sectional dependence. For testing stationarity of the variables, the second generation panel unit root test is Im-Pesaran and Shin (IPS) Test at level and difference. As a robustness test, I estimated a VAR (3) and computed the Impulse response function using Cholesky decomposition along with a 95% confidence interval. The current study concludes that the causality runs from household expenditures (HEX) to government expenditure (GEX) on education directly and not the other way round. This paper also finds a negative contemporaneous relationship between GEX and NPL at the 5% significance level. This means that as households become more credit-constrained, the government tends to spend less on education.

Impact of Government Spending In Social Sectors on Economic Growth: A Case Study of West African Economic and Monetary Union Countries

This study aims to investigate the short-run and long-run effects of government’s social expenditure proxies, namely education, and health spending on economic growth during the period 1985 - 2019 in West African Economic and Monetary Union. Using Auto Regressive Distributed Lag model (ARDL) based on panel data, the results of the study reveal that in short-run, government spending in social sectors has no significant impact on economic growth but in long-run the effects of education and health expenditures on the economic growth are significantly positive.

Marginal Effects of Merit Aid for Low-Income Students

Abstract Financial aid from the Susan Thompson Buffett Foundation (STBF) provides comprehensive support to a student population similar to that served by a host of state aid programs. In conjunction with STBF, we randomly assigned aid awards to thousands of Nebraska high school graduates from low-income, minority, and first-generation college households. Randomly assigned STBF awards boost bachelor’s (BA) degree completion for students targeting four-year schools by about 8 points. Degree gains are concentrated among four-year college applicants who would otherwise have been unlikely to pursue a four-year program. Degree effects are mediated by award-induced increases in credits earned toward a BA in the first year of college. The extent of initial four-year college engagement explains differences in impact by target campus and across covariate subgroups. The projected lifetime earnings effect of awards exceeds marginal educational spending for all of the subgroups examined in the study. Projected earnings gains exceed funder costs for urban students and for students with relatively weak academic preparation.

The Dynamic Impact of Government Expenditure in Education on Economic Growth

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