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A Hybrid Approach to Estimating the Efficiency of Public Spending on Education in Emerging and Developing Economies

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  • Francesco Grigoli

Abstract

The measurement of the efficiency of public education expenditure using parametric and non-parametric methods has proven challenging. This paper seeks to overcome the difficulties of earlier studies by using a hybrid approach to measure the efficiency of secondary education spending in emerging and developing economies. The approach accounts for the impact of the level of development on education outcomes by constructing different efficiency frontiers for lower- and higher-income economies. We find evidence of large potential gains in enrollment rates by improving efficiency. These are largest in lower-income economies, especially in Africa. Reallocating expenditure to reduce student-to-teacher ratios and improving the quality of institutions could help improve the efficiency of education spending. Easing the access to education facilities and reducing income inequality could also help improve efficiency.

Suggested Citation

  • Francesco Grigoli, 2015. "A Hybrid Approach to Estimating the Efficiency of Public Spending on Education in Emerging and Developing Economies," Applied Economics and Finance, Redfame publishing, vol. 2(1), pages 19-32, February.
  • Handle: RePEc:rfa:aefjnl:v:2:y:2015:i:1:p:19-32
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    References listed on IDEAS

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    1. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, Elsevier.
    2. Ruwan Jayasuriya & Quentin Wodon, 2003. "Efficiency in Reaching the Millennium Development Goals," World Bank Publications, The World Bank, number 13884, August.
    3. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
    4. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, August.
    5. Francesco Grigoli & Eduardo Ley, 2012. "Quality of Government and Living Standards; Adjusting for the Efficiency of Public Spending," IMF Working Papers 12/182, International Monetary Fund.
    6. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
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    Cited by:

    1. International Monetary Fund, 2014. "United Arab Emirates; Selected Issues," IMF Staff Country Reports 14/188, International Monetary Fund.
    2. International Monetary Fund, 2016. "Morocco; Selected Issues," IMF Staff Country Reports 16/36, International Monetary Fund.
    3. Moussé Sow & Ivohasina F Razafimahefa, 2015. "Fiscal Decentralization and the Efficiency of Public Service Delivery," IMF Working Papers 15/59, International Monetary Fund.
    4. Manabu Nose, 2017. "Estimation of drivers of public education expenditure: Baumol’s effect revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 512-535, June.
    5. Azar Dufrechou, Paola, 2016. "The efficiency of public education spending in Latin America: A comparison to high-income countries," International Journal of Educational Development, Elsevier, vol. 49(C), pages 188-203.
    6. S. Auci, 2014. "The role of production chains in Italian industry: A steady connection between Italy's North-West and South," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3, pages 617-658.

    More about this item

    Keywords

    education expenditure; efficiency; hybrid; developing economies; emerging economies;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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