IDEAS home Printed from https://ideas.repec.org/a/ukm/jlekon/v52y2018i2p109-122.html
   My bibliography  Save this article

The Determinants of Public Education Expenditure in Malaysia

Author

Listed:
  • Yun, Wong Sing

    (Faculty of Business Economics and Accountancy Universiti Malaysia Sabah Jalan UMS 88400 Kota Kinabalu Sabah MALAYSIA)

  • Yusoff, Remali

    (Faculty of Business Economics and Accountancy Universiti Malaysia Sabah Jalan UMS 88400 Kota Kinabalu Sabah MALAYSIA)

Abstract

The aim of this paper is to investigate the determinants of the public education expenditure in Malaysia during the period of 35 years from 1982 to 2016. This study intends to address the existing research gaps within Malaysia context that failed to receive much attention in the past. The determinants of education expenditure will be modeled using time series data within the autoregressive distributed lag (ARDL) Bound Testing approach and Error Correction Model (ECM) method. The empirical findings from this study identified the real gross domestic product growth rate (GDP), unemployment rate (UNEM), inflation rate (INF) and working age population (POP2) as the long run determinants of public education expenditure. Findings from the ARDL Bound Testing result further supported the Keynesian Counter- Cyclical theory as implied by the negative relationship between economic growth and public education expenditure in the long run. The short run analysis through ECM demonstrated that fluctuations in education expenditure was sensitive to the real gross domestic product growth rate (D(GDP)), unemployment rate (D(UNEM)), population of age less than 15 (D(LNPOP1)), and population of age greater than 64 (D(LNPOP3)). This study further recommends that the policy makers to play the role in responding to the economic conditions and demands of the society in their decision-making of the future allocation.

Suggested Citation

  • Yun, Wong Sing & Yusoff, Remali, 2018. "The Determinants of Public Education Expenditure in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 109-122.
    • Handle: RePEc:ukm:jlekon:v:52:y:2018:i:2:p:109-122
    DOI: http://dx.doi.org/10.17576/JEM-2018-5202-9
    as

    Download full text from publisher

    File URL: http://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_522-9.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.17576/JEM-2018-5202-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ezebuilo Romanus Ukwueze, 2015. "Determinants of the Size of Public Expenditure in Nigeria," SAGE Open, , vol. 5(4), pages 21582440156, December.
    2. Jung, Hong-Sang & Thorbecke, Erik, 2003. "The impact of public education expenditure on human capital, growth, and poverty in Tanzania and Zambia: a general equilibrium approach," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 701-725, November.
    3. James M. Poterba, 1997. "Demographic structure and the political economy of public education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 48-66.
    4. Sieng, Lai Wei & Yussof, Ishak, 2014. "Human Capital Accumulation and Economic Growth in Malaysia - Investigating the Long Run Nexus," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 48(1), pages 155-165.
    5. Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1.
    6. Inna Verbina & Abdur Chowdhury, 2004. "What determines public education expenditures in Russia?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 489-508, September.
    7. Daren A. Conrad, 2011. "The Level-Specific Effects of Education on Economic Growth: Evidence from Four Caribbean Countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 279-290, July-Dece.
    8. Dauda, Risikat Oladoyin S., 2011. "Effect of Public Educational Spending and Macroeconomic Uncertainty on Schooling Outcomes: Evidence from Nigeria," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 16(31), pages 7-21.
    9. Kurban, Haydar & Gallagher, Ryan M. & Persky, Joseph J., 2015. "Demographic changes and education expenditures: A reinterpretation," Economics of Education Review, Elsevier, vol. 45(C), pages 103-108.
    10. Roshaiza Taha & Nanthakumar Loganathan, 2008. "Causality Between Tax Revenue And Government Spending In Malaysia," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 2(2), pages 63-73.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yun, Wong Sing, 2021. "Impact of Demographical Structural Change on Public Health Care Expenditure in Malaysia," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(2).
    2. Oyeyemi Ademola Ahmed & Okoye, Alexander Tochukwu, 2024. "Perceived Influence of Inflation on Nigeria Educational System: A Case Study of Federal Polytechnic, Oko," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 1602-1613, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yun, Wong Sing, 2021. "Impact of Demographical Structural Change on Public Health Care Expenditure in Malaysia," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(2).
    2. Hambeleleni Iiyambo & Teresia Kaulihowa, 2020. "An assessment of the relationship between public debt, government expenditure and revenue in Namibia," Public Sector Economics, Institute of Public Finance, vol. 44(3), pages 331-353.
    3. Saito, Hitoshi, 2017. "The effects of population ageing on public education in Japan : A reinterpretation using micro data," MPRA Paper 79848, University Library of Munich, Germany.
    4. Waqar Muhammad Khan & Tahira Ilyas & Aneela Akhtar Chattha, 2023. "Exploring the Drivers of Government Expenditure Patterns in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 689-699.
    5. Cheng Yuan & Chengjian Li & Lauren A. Johnston, 2018. "The intergenerational education spillovers of pension reform in China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 671-701, July.
    6. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2012. "Ageing, government budgets, retirement, and growth," European Economic Review, Elsevier, vol. 56(1), pages 97-115.
    7. Haider A. Khan, 2007. "Social Accounting Matrix: A Very Short Introduction for Economic Modeling," CIRJE F-Series CIRJE-F-477, CIRJE, Faculty of Economics, University of Tokyo.
    8. A. Phiri, 2019. "Asymmetries in the revenue–expenditure nexus: new evidence from South Africa," Empirical Economics, Springer, vol. 56(5), pages 1515-1547, May.
    9. repec:zbw:rwirep:0557 is not listed on IDEAS
    10. Mayshar, Joram & Moav, Omer & Neeman, Zvika, 2011. "Transparency, Appropriability and the Early State," CEPR Discussion Papers 8548, C.E.P.R. Discussion Papers.
    11. repec:eur:ejesjr:373 is not listed on IDEAS
    12. Maisonnave, Hélène & Mamboundou, Pierre Nziengui, 2022. "Agricultural economic reforms, gender inequality and poverty in Senegal," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 361-374.
    13. Mihai Mutascu, 2016. "Government Revenues and Expenditures in the East European Economies: A Bootstrap Panel Granger Causality Approach," Eastern European Economics, Taylor & Francis Journals, vol. 54(6), pages 489-502, November.
    14. Luc Savard & Stéphane Mussard, 2005. "Micro-simulation and Multi-decomposition: A Case Study: Philippines," Cahiers de recherche 05-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    15. Tetsuo Ono, 2015. "Public education and social security: a political economy approach," Economics of Governance, Springer, vol. 16(1), pages 1-25, February.
    16. Buffie, Edward F. & Atolia, Manoj, 2012. "Trade, growth, and poverty in Zambia: Insights from a dynamic GE model," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 211-229.
    17. Allouch, Nizar, 2017. "The cost of segregation in (social) networks," Games and Economic Behavior, Elsevier, vol. 106(C), pages 329-342.
    18. Harald Fadinger & Pablo Fleiss, 2011. "Trade and Sectoral Productivity," Economic Journal, Royal Economic Society, vol. 121(555), pages 958-989, September.
    19. Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2024. "On the effects of intergovernmental grants: a survey," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(3), pages 856-908, June.
    20. Ant—nio Afonso & Ludger Schuknecht & Vito Tanzi, 2023. "The size of government," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 1, pages 6-31, Edward Elgar Publishing.
    21. Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2016. "Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries," Economica, London School of Economics and Political Science, vol. 83(330), pages 219-246, April.
    22. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ukm:jlekon:v:52:y:2018:i:2:p:109-122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Asri Abd Ghani (email available below). General contact details of provider: https://edirc.repec.org/data/feukmmy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.