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The Impact of Public Education Expenditure on Human Capital, Growth, and Poverty in Tanzania and Zambia; A General Equilibrium Approach

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  • Erik Thorbecke
  • Hong-Sang Jung

Abstract

The impact of public education expenditure on human capital, the supply of different labor skills, and its macroeconomic and distributional consequences is appraised within a multisector CGE model. The model is applied to and calibrated for two Heavily Indebted Poor Countries (HIPCs), Tanzania and Zambia. The simulation results suggest that education expenditure can raise economic growth. However, to maximize benefits from education expenditure, a sufficiently high level of physical investment is needed, as are measures that improve the match between the pattern of educational output and the structure of effective demand for labor. An important result of the simulation experiments is that a well-targeted pattern of education expenditure can be effective for poverty alleviation.

Suggested Citation

  • Erik Thorbecke & Hong-Sang Jung, 2001. "The Impact of Public Education Expenditure on Human Capital, Growth, and Poverty in Tanzania and Zambia; A General Equilibrium Approach," IMF Working Papers 01/106, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:01/106
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    References listed on IDEAS

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    1. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    2. 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.
    3. Robinson, Sherman & Yunez-Naude, Antonio & Hinojosa-Ojeda, Raul & Lewis, Jeffrey D. & Devarajan, Shantayanan, 1999. "From stylized to applied models:: Building multisector CGE models for policy analysis," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 5-38.
    4. Marijn Verhoeven & Sanjeev Gupta & Erwin H Tiongson, 1999. "Does Higher Government Spending Buy Better Results in Education and Health Care?," IMF Working Papers 99/21, International Monetary Fund.
    5. Eric A. Hanushek, 1996. "Measuring Investment in Education," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 9-30, Fall.
    6. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-946, December.
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    Cited by:

    1. Zuzana Křístková, 2010. "Approaches to the Dynamization of the CGE Model Applied to the Czech Republic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(0), pages 59-82, May.
    2. Margaret Chitiga & Ramos Mabugu & Hélène Maisonnave & Véronique Robichaud & Bernard Decaluwé, 2009. "The Impact of the International Economic Crisis in South Africa," Cahiers de recherche 0952, CIRPEE.
    3. Nursini Nursini, 2017. "Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia: 1990-2015," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 358-364.
    4. Hong, Chanyoung & Yang, Heewon & Hwang, Wonsik & Lee, Jeong-Dong, 2014. "Validation of an R&D-based computable general equilibrium model," Economic Modelling, Elsevier, vol. 42(C), pages 454-463.
    5. Daniela Del Boca & Chiara Monfardini & Sarah Grace See, 2017. "Government education expenditures, pre-primary education and school performance: A cross-country analysis," CHILD Working Papers Series 61 JEL Classification: J1, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    6. Nlemfu Mukoko, Jean Blaise, 2016. "Investissements Sociaux et Pauvreté en R.D.Congo: Une Approche en Équilibre Général
      [Social Investments and Poverty in the D.R.Congo : A General Equilibrium Approach]
      ," MPRA Paper 72662, University Library of Munich, Germany.
    7. Zuzana Křístková, 2010. "Approaches to the Dynamization of the CGE Model Applied to the Czech Republic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(0), pages 59-82, May.
    8. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
    9. Bigsten, Arne & Levin, Jorgen & Persson, Hakan, 2001. "Debt Relief and Growth: A study of Zambia and Tanzania," WIDER Working Paper Series 104, World Institute for Development Economic Research (UNU-WIDER).
    10. Sinha, Anushree & Khan, Haider, 2008. "Gender and Informal Sector Analysis in India: Economy Wide Approaches," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).

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