Factors Governing Enrolment and Public Expenditure on Education in Ethiopia
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Date
1996-06
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Publisher
A.A.U
Abstract
An effort is made to: identify and determine the effect of the economic and demographic
factors that influence the rapid growth
of the educational system in Ethiopia. In doing this, the paper
reviews the theoretical and empirical arguments for the rapid
investment on education in the world. The analytical model
constructed by schultz (1985) to address the same problem is
used. The model enables us to determine the effect of the factors
identified to influence the growth of the system, in production demand
framework as constraints and conditions affecting the
costs of, and demands for educational services.
In the empirical estimation per capita income per adult , relative
price of teachers, relative size of school age population and
proportion of urban population are identified as the major
factors governing the growth of the system. It is found out that
the moderately growing income per adult, the decreasing relative
price of teachers and the constantly growing urbanization
significantly contributed to the growth of public expenditure on
education. The rapidly growing school-age population squeezed and
constrained the growth of public expenditure .
On the other hand, from the components
expenditure per school child, it is seen
underlying this
that the rapidly
increasing enrolment with decreasing expenditure per student was
made possible by; the relative substitution of physical resources
by human resources and the absolute
resource intensity per student .
depreciation of physical
In addition to these, the effect o f economic and demographic
factors on expenditure per school child by school levels and on
the enrolment rates of males and females are also discussed .
Finally, the implications of these findings on the existing
education system of the country are also analyzed.
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Keywords
Enrolment and Public Expenditure, Education in Ethiopia