[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/agd/wpaper/21-048.html
   My bibliography  Save this paper

Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries

Author

Listed:
  • Adesoji O. Farayibi

    (University of Ibadan, Nigeria)

  • Oludele Folarin

    (University of Ibadan, Nigeria)

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

Suggested Citation

  • Adesoji O. Farayibi & Oludele Folarin, 2021. "Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries," Working Papers of the African Governance and Development Institute. 21/048, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:21/048
    as

    Download full text from publisher

    File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Does-Government-Education-Expenditure-Affect-Educational-Outcomes.pdf
    File Function: Revised version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Schultz, T., 2002. "Why Governments Should Invest More to Educate Girls," World Development, Elsevier, vol. 30(2), pages 207-225, February.
    2. Simplice A. Asongu & Uchenna R. Efobi & Vanessa S. Tchamyou, 2016. "Globalization and Governance: A Critical Contribution to the Empirics," Research Africa Network Working Papers 16/017, Research Africa Network (RAN).
    3. Mincer, Jacob, 1970. "The Distribution of Labor Incomes: A Survey with Special Reference to the Human Capital Approach," Journal of Economic Literature, American Economic Association, vol. 8(1), pages 1-26, March.
    4. Samer Al-Samarrai, 2006. "Achieving education for all: how much does money matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(2), pages 179-206.
    5. AfDB AfDB, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 2305, African Development Bank.
    6. Asongu, Simplice & Rahman, Mushfiqur & Nnanna, Joseph & Haffar, Mohamed, 2020. "Enhancing Information Technology for Value Added Across Economic Sectors in Sub-Saharan Africa," MPRA Paper 107238, University Library of Munich, Germany.
    7. Simplice Asongu & Nicholas M. Odhiambo, 2020. "Financial access, governance and insurance sector development in sub-Saharan Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(4), pages 849-875, February.
    8. Roland Craigwell & Danielle Bynoe & Shane Lowe, 2012. "The effectiveness of government expenditure on education and health care in the Caribbean," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 11(1), pages 4-18, April.
    9. repec:fth:prinin:366 is not listed on IDEAS
    10. Elva Bova & Christina Kolerus & Sampawende Tapsoba, 2015. "A fiscal job? An analysis of fiscal policy and the labor market," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-17, December.
    11. Anne Case & Angus Deaton, 1999. "School Inputs and Educational Outcomes in South Africa," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 1047-1084.
    12. Gary McMahon & Lyn Squire, 2003. "Explaining Growth: A Global Research Project," International Economic Association Series, in: Gary McMahon & Lyn Squire (ed.), Explaining Growth, chapter 1, pages 1-31, Palgrave Macmillan.
    13. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5.
    14. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages 64-98, February.
    15. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    16. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    17. Silles, Mary A., 2009. "The causal effect of education on health: Evidence from the United Kingdom," Economics of Education Review, Elsevier, vol. 28(1), pages 122-128, February.
    18. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 227, African Development Bank.
    19. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    20. Jane Kabubo-Mariara & Godfrey K. Ndenge & Domisiano K. Mwabu, 2009. "Determinants of Children's Nutritional Status in Kenya: Evidence from Demographic and Health Surveys," Journal of African Economies, Centre for the Study of African Economies, vol. 18(3), pages 363-387, June.
    21. C. Kirabo Jackson & Rucker C. Johnson & Claudia Persico, 2016. "The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(1), pages 157-218.
    22. Peter Glick & Josée Randriamamonjy & David Sahn, 2009. "Determinants of HIV Knowledge and Condom Use among Women in Madagascar: An Analysis Using Matched Household and Community Data," African Development Review, African Development Bank, vol. 21(1), pages 147-179.
    23. Asongu, Simplice A. & Rahman, Mushfiqur & Nnanna, Joseph & Haffar, Mohamed, 2020. "Enhancing information technology for value added across economic sectors in Sub-Saharan Africa✰," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    24. David Card & Alan B. Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 31-50, Fall.
    25. Alan B. Krueger, 2003. "Economic Considerations and Class Size," Economic Journal, Royal Economic Society, vol. 113(485), pages 34-63, February.
    26. Ethan Ilzetzki & Carlos A. Vegh, 2008. "Procyclical Fiscal Policy in Developing Countries: Truth or Fiction?," NBER Working Papers 14191, National Bureau of Economic Research, Inc.
    27. Kwabena Gyimah-Brempong, 2011. "Education and Economic Development in Africa," African Development Review, African Development Bank, vol. 23(2), pages 219-236.
    28. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    29. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    30. AfDB AfDB, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 2225, African Development Bank.
    31. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    32. Aart Kraay, 2012. "How large is the Government Spending Multiplier? Evidence from World Bank Lending," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(2), pages 829-887.
    33. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    34. Marijn Verhoeven & Mr. Sanjeev Gupta & Mr. Erwin H Tiongson, 1999. "Does Higher Government Spending Buy Better Results in Education and Health Care?," IMF Working Papers 1999/021, International Monetary Fund.
    35. Hanushek, Eric A., 2013. "Economic growth in developing countries: The role of human capital," Economics of Education Review, Elsevier, vol. 37(C), pages 204-212.
    36. David Card & Alan Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Working Papers 745, Princeton University, Department of Economics, Industrial Relations Section..
    37. Eric Arthur & Hassan E. Oaikhenan, 2017. "The Effects of Health Expenditure on Health Outcomes in Sub-Saharan Africa (SSA)," African Development Review, African Development Bank, vol. 29(3), pages 524-536, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qian Wang & Luqun Xie & Di Zhu, 2024. "Educational level of researchers in spin-out R&D units and external technology acquisition: The higher, the more?," The Journal of Technology Transfer, Springer, vol. 49(1), pages 236-261, February.
    2. Élisé Wendlassida Miningou & Medjy Pierre‐Louis & Jean‐Marc Bernard, 2022. "Improving learning outcomes in francophone Africa: More resources or improved efficiency?," African Development Review, African Development Bank, vol. 34(1), pages 127-141, March.
    3. Joseph Mawejje, 2024. "Government expenditure, informality, and economic growth: Evidence from Eastern and Southern African countries," African Development Review, African Development Bank, vol. 36(1), pages 125-138, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adesoji O. Farayibi & Oludele Folarin, 2020. "Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries," Research Africa Network Working Papers 21/048, Research Africa Network (RAN).
    2. Adesoji O. Farayibi & Oludele Folarin, 2021. "Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries," Working Papers 21/048, European Xtramile Centre of African Studies (EXCAS).
    3. Adesoji Oladapo Farayibi & Oludele Folarin, 2021. "Does government education expenditure affect educational outcomes? New evidence from sub‐Saharan African countries," African Development Review, African Development Bank, vol. 33(3), pages 546-559, September.
    4. Gruber, Lloyd & Kosack, Stephen, 2014. "The tertiary tilt: education and inequality in the developing world," LSE Research Online Documents on Economics 54202, London School of Economics and Political Science, LSE Library.
    5. Marcelo Soto, 2006. "The Causal Effect of Education on Aggregate Income," Working Papers 0605, International Economics Institute, University of Valencia.
    6. Kosack, Stephen & Tobin, Jennifer L., 2015. "Which Countries’ Citizens Are Better Off With Trade?," World Development, Elsevier, vol. 76(C), pages 95-113.
    7. AfDB AfDB, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 2305, African Development Bank.
    8. AfDB AfDB, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 2225, African Development Bank.
    9. Gundlach, Erich & Wößmann, Ludger, . "Bildungsressourcen, Bildungsinstitutionen und Bildungsqualität: Makroökonomische Relevanz und mikroökonomische Evidenz," Chapters in Economics,, University of Munich, Department of Economics.
    10. Gruber, Lloyd & Kosack, Stephen, 2014. "The Tertiary Tilt: Education and Inequality in the Developing World," World Development, Elsevier, vol. 54(C), pages 253-272.
    11. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    12. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    13. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    14. West, Martin R. & Woessmann, Ludger, 2006. "Which school systems sort weaker students into smaller classes? International evidence," European Journal of Political Economy, Elsevier, vol. 22(4), pages 944-968, December.
    15. Yamarik Steven J, 2008. "Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-16, August.
    16. Marcelo Soto, 2006. "Estimating the Social Return on Schooling," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Human and Economic Resources, pages 43-65, Izmir University of Economics.
    17. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.
    18. Hanushek, Eric A. & Luque, Javier A., 2003. "Efficiency and equity in schools around the world," Economics of Education Review, Elsevier, vol. 22(5), pages 481-502, October.
    19. Diego Restuccia & Carlos Urrutia, 2004. "Intergenerational Persistence of Earnings: The Role of Early and College Education," American Economic Review, American Economic Association, vol. 94(5), pages 1354-1378, December.
    20. Christian Dustmann & Najma Rajah & Arthur van Soest, 2003. "Class Size, Education, and Wages," Economic Journal, Royal Economic Society, vol. 113(485), pages 99-120, February.

    More about this item

    Keywords

    Government Education Expenditure; Educational Outcomes Higher Education; System GMM; sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agd:wpaper:21/048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Asongu Simplice (email available below). General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.