Public expenditure management and education outcomes: micro-evidence from primary schools and public officials in Gauteng and North-West provinces, South Africa
Date
2012-07-03
Authors
Boateng, Nana Adowaa
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Abstract
The overarching aim of this study is to examine the significance of public expenditure management (PEM) for primary education outcomes in public schools in two South African provinces (Gauteng and North West). The study examines whether technical and allocative inefficiencies in public spending have a significant impact on education outcomes (measured by pass, repetition and dropout rates). In doing so, the study makes an important contribution to the economics of education literature, where the determinants of good education outcomes remain ambiguous. Using cross-sectional data from 175 public primary schools, the study finds evidence of technical inefficiencies in terms of misappropriation of education funds (leakages) and delays in remitting funds. While the occurrences of leakages are not strongly associated with poor education outcomes, the study finds a strong positive correlation between delays and Grade 1 repetition. In terms of allocative efficiency, the study finds no evidence that public expenditure is significantly associated with education outcomes. This remains true for public spending even when the redistributive component (the disproportional allocation of funds to disadvantaged schools) is taken into account. Total resource wealth (including public and private contributions) only matters when interacted with certain poverty quintiles and class sizes. The findings from the OLS and negative binomial regression analyses reveal that increased spending on learning and teaching support (LTSM) materials is strongly associated with lower Grade 1 repetition rates. The relationship is even stronger when LTSM spending is interacted with socio-economic status. The study also finds that repetition rates are strongly driven by poverty indicators at the district level while dropout rates are strongly driven by district and school inefficiency
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Keywords
Education, Expenditure, Primary education, South Africa, Public expenditure management