The Correlation between Education Expenditure and Higher Education in Pakistan

Author(s):  
Gulzar Ali
2020 ◽  
Vol 22 (1) ◽  
pp. 77-99
Author(s):  
Faris Nasif Alshubiri

Purpose The purpose of this study is to examine the impact of financial sustainability indicators of higher education on foreign direct investment (FDI) using empirical evidence from 26 Organization for Economic Co-operation and Development (OECD) countries. The basic criterion for determining the financial sustainability of higher education institutions included indicators of income generated by higher education institutions being greater than the operational costs. However, this requires financial sustainability, which depends on financial self-sufficiency without seeking external financial assistance. This situation is affected by investment attractiveness. Design/methodology/approach Three quantitative proxies were used in this study to explain the financial sustainability indicators in higher education institutions of OECD countries: financial expenditures proxy measured by current tertiary education expenditure (CE); efficiency proxy measured by university-life expectancy (ULE) and endogenous growth proxy measured by gross enrolment tertiary ratio (GETR) to show the effect on FDI. Also, this study used six control variables considered an important part of experimental design and refers to contributing factors that were eliminated to clarify the independent variable and a dependent variable nexus. The quantitative data was collected from World Development Indicators (WDI). This study applied a STATA version using panel data techniques for over 15 years from 2001 to 2015 and also used fixed effect (FE) and random effect (RE) estimations to address problems of heterogeneity. To mitigate the endogeneity problem, the generalized method of moments (GMM) was also used. Findings The results of this study were derived from the adoption of financial models applied in higher education institutions to test the financial sustainability indicators. Based on the RE and FE results, a one per cent increase in the current tertiary education expenditure caused about 0.19 and 0.18 per cent increase in FDI in the OECD economies. This positive and significant impact was higher when considering the problem of endogeneity by applying the GMM estimations. FDI grew by about 0.22 per cent when the CE increased by one percent. Meanwhile, there was a significant and negative relationship between FDI and the GETR variable for the FE results but this previous relationship was insignificant for RE estimations. The FDI in OECD economies decreased by about 0.0006 per cent when the GETR increased by 1 per cent. This negative effect became larger when applying the GMM estimations. Finally, the ULE results showed there was a positive and insignificant relationship between ULE and FDI for all estimators. Practical implications The management and analysis of the financial health indicators is necessary to evaluate educational activities but is not sufficient to achieve financial sustainability, which extends beyond the indicators of financial health to encompass factors such as student achievements; research and scientific output; community engagement; productive capacity; quality inputs; risk and infrastructure; and systems. Originality/value This study is considered one of the few existing studies examining the ways in which to achieve financial sustainability in higher education institutions using quantitative financial methods. Specifically, this study adopted Pecking order theory in its analysis of the financial sustainability indicators to clarify whether the financial sustainability indicators of higher education institutions lead to an improvement in the attractiveness of foreign investment in OECD countries in the long run. The findings contribute to the necessity of adopting internal financing sources in accordance with the Pecking Order theory to help achieve financial sustainability growth.


Author(s):  
Tansaya Khajikhan

AbstractThe existing evidence suggests that there is a reverse gender gap in higher education in Mongolia. Prior studies on the reverse gender gap in education were based on the gross enrolment rates and did not delve deeper in terms of using empirical data analyzed over an extended time-period. This paper investigates gender bias in the households’ expenditure on higher education and tracks changes over the ten-year period from 2008 to 2018 using empirical data. In this regard, this study examines the factors and determinants responsible for the gender bias in the households’ expenditure on higher education. To address these questions, the study employs the Engel Curve approach (unconditional educational expenditure) and Hurdle model, which estimates bias in the enrolment decisions and bias in the conditional educational expenditure, both at the household and individual level in 2008 and 2018, using the Household Socio-Economic Survey of Mongolia. Its findings illustrate that gender bias in households’ expenditure on higher education does exist, and it favors girls over boys at the household and individual levels in 2008 and 2018. The findings show that households allocate a greater share of education expenditure to females aged 16–18 and 19–24 than to their male counterparts. Statistical analysis suggests that households’ residence and the occupation of household heads are two important factors affecting this gender bias. Thus, if a household resides in the countryside and its head is employed in the agricultural sector, female offspring are more likely to receive higher education than male offspring. Traditional gender roles and the Mongolian way of life, which centers around attending to livestock and requiring a male labor force and the wage gap, are contextual factors that help explain this gender bias.


2021 ◽  
Vol 3 (2) ◽  
pp. 113-120
Author(s):  
Kiran Zahra ◽  
Mudassar Yasin ◽  
Baserat Sultana ◽  
Zulqarnain Haider ◽  
Raheela Khatoon

Education is the most fundamental right in the current situation, and it is an essential element of economic growth. No country can achieve economic development and goals without investing in education. Pakistan’s economic development is possible when education is equal for both men and women, but the government did not give importance to the sector as it deserved. This study investigated the determinants of female higher education in Pakistan and the impact of women's education on the economic growth of Pakistan. This study utilized time-series data from 1991 to 2019. The autoregressive distribution lag (ARDL) model is applied to estimate the impact. The result shows that in Pakistan, education expenditure has no positive effect on female education. In contrast, a positive relationship between female higher education and GDP growth exists, but this relation is not strong in the short run and long run.


Author(s):  
Marko Slavković ◽  
Marijana Simić

Current trends such as globalization and the growing importance of intangible assets and a knowledge-based economy makes a significant contribution to highlighting the importance of higher education funding. Classified as one of the key factors determining the level of innovation and competitiveness, both at the micro and macro levels, education and especially higher education have been funded in different ways in different countries. Therefore, the main objective of the research is to determine the impact of higher education expenditure on innovation in Serbia and Slovenia, on the basis of which a comparison of results can be made. Analyzing the data for the period 2007-2016 and based on the results of the regression analysis, we conclude that there is a negative significant impact of the share of the state allocation for higher education on the level of innovation in Serbia, while the results relating to the situation in Slovenia are contrary and indicate a positive significant impact.


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