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A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data

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  • Zahid Asghar

    () (National Institute of Banking and Finance (NIBAF), State Bank of Pakistan, Islamabad, Pakistan. The views expressed in this paper are those of the author and do not necessarily reflect the views of the State Bank of Pakistan and/or its subsidiaries.)

  • Mudassar Zahra

    () (Quaid-i-Azam University, Islamabad, Pakistan.)

Abstract

Education is one of the most important means of economic development, and there is consensus among policymakers that it is better to be educated than not. The debate on education is not, therefore, whether it is good or bad, rather it centers on whether the state should intervene in its provision. Public provision of education at the school level is generally considered one of the most important investments for creating social opportunities to help the wider population actively participate in various economic activities. This study investigates whether public spending on education in Pakistan is pro-poor at various levels of schooling. We find that public spending at the primary and secondary level is progressive, while higher education spending is regressive. These results hold at the national and provincial level. Based on these findings, we recommend that the government increase its spending on primary, secondary, and technical education. Higher education, however, should be provided on merit, and the private sector should be encouraged to provide high-quality education.

Suggested Citation

  • Zahid Asghar & Mudassar Zahra, 2012. "A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 111-136, July-Dec.
  • Handle: RePEc:lje:journl:v:17:y:2012:i:2:p:111-136
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    References listed on IDEAS

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    1. Rana Ejaz Ali Khan & Karamat Ali, 2003. "Determinants of Schooling in Rural Areas of Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, pages 99-122.
    2. Hyun H. Son, 2006. "Assessing the pro-poorness of government fiscal policy in Thailand," Working Papers 15, International Policy Centre for Inclusive Growth.
    3. repec:lje:journl:v:2:y:2007:i:2:p:27-48 is not listed on IDEAS
    4. Heltberg, Rasmus & Simler, Kenneth & Tarp, Finn, 2001. "Public Spending and Poverty in Mozambique," WIDER Working Paper Series 063, World Institute for Development Economic Research (UNU-WIDER).
    5. Rosario G. Manasan & Janet S. Cuenca & Eden C. Villanueva-Ruiz, 2008. "Benefit Incidence of Public Spending on Education in the Philippines," Development Economics Working Papers 22660, East Asian Bureau of Economic Research.
    6. Manasan, Rosario G. & Cuenca, Janet S. & Villanueva-Ruiz, Eden C., 2008. "Benefit Incidence of Public Spending on Education in the Philippines," Discussion Papers DP 2008-08, Philippine Institute for Development Studies.
    7. Easterly, William, 2007. "The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill And So Little Good," OUP Catalogue, Oxford University Press, number 9780199226115.
    8. Hyun H. Son, 2006. "Assessing the “Pro-Poorness†of Government Fiscal Policy in Thailand," Public Finance Review, , vol. 34(4), pages 427-449, July.
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    Cited by:

    1. repec:ksp:journ1:v:4:y:2017:i:2:p:203-214 is not listed on IDEAS
    2. Syed Ahmed & Asif Javed, 2017. "The Effect of Public Sector Development Expenditures and Investment on Economic Growth: Evidence from Pakistan," Working Papers id:12237, eSocialSciences.
    3. Syed Shujaat AHMED & Asif JAVED, 2017. "The Effect of Public Sector Development Expenditures and Investment on Economic Growth: Evidence from Pakistan," Journal of Economics and Political Economy, KSP Journals, vol. 4(2), pages 203-214, June.

    More about this item

    Keywords

    Education; economic; development; Pakistan.;

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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