Econometrics

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Impact of Public Educational Spending on the Schooling Outcome (The Case of Ethiopia)
(Addis Ababa University, 2014-06) Asres, Wubishet; Woldehanna, Tassew (PhD)
This study examines the effect of government educational spending on schooling outcome in Ethiopia using the econometric methods of Ordinary least square. The study attempts to measure the impacts of public spending on educational sector using annual data set on public educational expenditure, adult literacy rate, and macroeconomic uncertainty proxied by consumer price index for the period 1980/81-2011/12.All the variables under consideration are stationary at their respective first difference of their growth rate. The results indicate that schooling outcome which is proxied by adult literacy rate positively related with all the identified explanatory variables except the consumer price index. The study found that public educational spending impacts positively and strongly schooling outcome. The policy implication of this study is that, current government should continue its monetary and fiscal measures so as to contain the growth of inflation since in the long run it have a negative effect on educational outcome.