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Policy Reforms and Financing of Elementary Education in India: A Study of the Quality of Service and Outcome

  • Pradhan, Basanta K.
  • Singh, Shalabh Kumar
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    Even as a case can be made out for public spending on elementary education, its link with enrolment rates does not appear strong. However, once efficiency and demand-side factors are accounted for, public spending is seen to make an impact on the rate of enrolment and quality of education as measured by teacher-pupil ratio. Teacher-pupil ratio and the number of schools, in turn, are seen to have a stronger impact on the rate of enrolment in efficient states. Literacy rates as well as state domestic product were seen to have a positive influence on education. The share of public expenditure on elementary education in GDP peaked in 1990-91 but never achieved the targeted level of 6 per cent of GDP. The reforms brought a break in the growth rate of public expenditure on elementary education, from which not all the states could recover even over an extended period of time.

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    Paper provided by National Council of Applied Economic Research in its series Working Papers with number 93.

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    Length: 46 pages
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    Handle: RePEc:nca:ncaerw:93
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    1. Lau, Lawrence J. & Jamison, Dean T. & Liu, Shu-Cheng & Rivkin, Steven, 1993. "Education and economic growth Some cross-sectional evidence from Brazil," Journal of Development Economics, Elsevier, vol. 41(1), pages 45-70, June.
    2. Lorraine Dearden & Javier Ferri & Costas Meghir, 2002. "The Effect Of School Quality On Educational Attainment And Wages," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 1-20, February.
    3. Taylor, Lance, 1993. "The rocky road to reform: Trade, industrial, financial, and agricultural strategies," World Development, Elsevier, vol. 21(4), pages 577-590, April.
    4. Sahn, David E., 1992. "Public expenditures in sub-Saharan Africa during a period of economic reforms," World Development, Elsevier, vol. 20(5), pages 673-693, May.
    5. L. G. Hines, 1955. "Economics and the Public Interest," Land Economics, University of Wisconsin Press, vol. 31(2), pages 108-119.
    6. Gabriela Inchauste, 2000. "Educational Choices and Educational Constraints; Evidence From Bolivia," IMF Working Papers 00/42, International Monetary Fund.
    7. Benedict J. Clements, 1999. "The Efficiency of Education Expenditure in Portugal," IMF Working Papers 99/179, International Monetary Fund.
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