On-line version ISSN 1015-8812
S. Afr. j. econ. manag. sci. vol.13 n.1 Pretoria Jan. 2010
The determinants of public expenditure and expenditure on education in particular in a selection of African countries1
Olusegun A Akanbi; Niek J Schoeman
Department of Economics, University of Pretoria
This study reports on research aimed at measuring the drivers behind public expenditure with specific reference to education expenditure in Africa. The empirical estimations are carried out using a public choice model on a panel of 15 selected African countries over the period 1995-2004. The results show that government expenditure on education is resilient to shocks and the education sector is not seriously affected by allocative changes that favour corruption. Expenditure on education in the countries included in the study generally complies with the guidelines set by the IMF in terms of their fiscal adjustment programmes.
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Accepted July 2009
1 We are thankful to Dr E Nyamongo for his assistance in obtaining data for this study and also his constructive suggestions and comments.
2 Note: Figure 1 depicts the trend of the two variables and is calculated using a Hodrick-Prescott Filter.
3 The solution for the optimal choice of E and G is shown in Appendix 1.
4 List of the countries included in the estimations is shown in Appendix 2.
5 List of countries excluded from the estimations is also shown in Appendix 2.
6 Most corrupt (-2.5) and Least corrupt (+2.5)
7 Appendix 3 present the results of the countries that are excluded from the sample.