The effectiveness of government expenditure on education and health care in the Caribbean
Purpose – Investment in human development is considered a means of improving the quality of life and sustaining economic growth in the Caribbean. The purpose of this paper is to assess the efficacy of public spending on health care and education by evaluating the life expectancy and school enrolment rates of these countries. Design/methodology/approach – Using a data set containing 19 Caribbean countries over the period 1995 to 2007 for health care and 1980 to 2009 for education, a Panel Ordinary Least Squares model was employed. Findings – The results revealed that health expenditure has a significant positive effect on health status, while spending on education has no appreciable influence on either primary or secondary school enrolment. Originality/value – Unlike previous Caribbean research, the paper explores a variable for quality in the education system, that is, the pupil-teacher ratio. It also seeks to update the existing Caribbean literature by employing data from 1980 to 2009.
Volume (Year): 11 (2012)
Issue (Month): 1 (April)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/ijdi.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schultz, T.P., 1993.
"Investments in the Schooling and Health of Women and Men: Quantities and Returns,"
702, Yale - Economic Growth Center.
- T. Paul Schultz, 1993. "Investments in the Schooling and Health of Women and Men: Quantities and Returns," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 694-734.
- Swaroop, Vinaya, 1996. "The public sector in the Caribbean : issues and reform options," Policy Research Working Paper Series 1609, The World Bank.
- International Monetary Fund, 2002.
"Moreon the Effectiveness of Public Spendingon Health Care and Education; A Covariance Structure Model,"
IMF Working Papers
02/90, International Monetary Fund.
- Emanuele Baldacci & Maria Teresa Guin-Siu & Luiz De Mello, 2003. "More on the effectiveness of public spending on health care and education: a covariance structure model," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(6), pages 709-725.
- Jong-Wha Lee & Robert J. Barro, 1997.
"Schooling Quality in a Cross Section of Countries,"
NBER Working Papers
6198, National Bureau of Economic Research, Inc.
- Mingat, Alain & Jee-Peng Tan, 1998. "The mechanics of progress in education : evidence from cross-country data," Policy Research Working Paper Series 2015, The World Bank.
- Judson, Ruth, 1998. " Economic Growth and Investment in Education: How Allocation Matters," Journal of Economic Growth, Springer, vol. 3(4), pages 337-59, December.
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002.
"Unit root tests in panel data: asymptotic and finite-sample properties,"
Journal of Econometrics,
Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, . "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995.
"Testing for Unit Roots in Heterogeneous Panels,"
Cambridge Working Papers in Economics
9526, Faculty of Economics, University of Cambridge.
- Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, June.
- Pradhan, S., 1996. "Evaluating Public Spending: A Framework for Public Expenditure Reviews," World Bank - Discussion Papers 323, World Bank.
- Rajkumar, Andrew Sunil & Swaroop, Vinaya, 2008. "Public spending and outcomes: Does governance matter?," Journal of Development Economics, Elsevier, vol. 86(1), pages 96-111, April.
- Luiz de Mello & Mauro Pisu, 2009. "The Effectiveness of Education and Health Spending among Brazilian Municipalities," OECD Economics Department Working Papers 712, OECD Publishing.
- Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
- Mehrotra, S., 1998. "Education for All: Policy Lessons from High-Achieving Countries," Papers 98-005, California Los Angeles - Applied Econometrics.
- George Psacharopoulos & Harry Anthony Patrinos, 2004.
"Returns to investment in education: a further update,"
Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
- Mark C. Berger & J. Paul Leigh, 1989. "Schooling, Self-Selection, and Health," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 433-455.
- Patrick McEwan, 1999. "Private costs and the rate of return to primary education," Applied Economics Letters, Taylor & Francis Journals, vol. 6(11), pages 759-760.
- Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
When requesting a correction, please mention this item's handle: RePEc:eme:ijdipp:v:11:y:2012:i:1:p:4-18. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If references are entirely missing, you can add them using this form.