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Does public spending on tertiary education increase tertiary enrollment? Evidence from a large panel of countries

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  • Bala, Patrick
  • Herzer, Dierk

Abstract

This study provides a systematic review of the few existing studies on the impact of public tertiary education spending on tertiary enrollment. It identifies several shortcomings in this literature and reexamines this impact while addressing the identified shortcomings, which include: (i) using public expenditures on tertiary education per student as a measure of overall public expenditures on tertiary education, (ii) omitting public costs per student when estimating the impact of public tertiary education spending on tertiary enrollment, (iii) ignoring potential endogeneity, (iv) ignoring possible spurious correlations in large T panels due to non-stationary data, and (v) not controlling for common time effects. In contrast to previous studies, this study finds, based on panel data for up to 149 countries between 1997 and 2018, a significant positive impact of public spending on tertiary education on tertiary enrollment that is robust to several sensitivity checks.

Suggested Citation

  • Bala, Patrick & Herzer, Dierk, 2024. "Does public spending on tertiary education increase tertiary enrollment? Evidence from a large panel of countries," MPRA Paper 121419, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121419
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    File URL: https://mpra.ub.uni-muenchen.de/121419/1/MPRA_paper_121419.pdf
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    References listed on IDEAS

    as
    1. E. N. Appiah & W. W. McMahon, 2002. "The Social Outcomes of Education and Feedbacks on Growth in Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 38(4), pages 27-68.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
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    More about this item

    Keywords

    tertiary enrollment; public tertiary education spending; public costs per student; GMM;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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