A model of the impact of government revenue and quality of governance on schooling

Stephen  Hall; Bernadette Ann-Marie O'Hare

doi:10.1016/j.ijedudev.2024.103055

A model of the impact of government revenue and quality of governance on schooling

Stephen Hall, Bernadette Ann-Marie O'Hare^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

When governments have more revenue, they spend more on human capital, and spending is more effective in well-governed countries. Here, we use an equilibrium correction model to empirically investigate the relationship between government revenue per capita, six indicators of quality of governance, and school attendance, using an unbalanced panel dataset that includes nearly all countries. The results suggest a strong effect over time: as government revenue increases, school attendance rates increase, and the magnitude of this influence is mediated significantly by a country’s quality of governance. Interestingly, the impact of governance is more pronounced in primary education than it is in lower or upper secondary education. This model offers the ability to demonstrate the impact of increases and decreases in government revenue in an individual country while accounting for the impact of revenue on governance and the impact of both revenue and governance on school attendance.

Original language	English
Article number	103055
Number of pages	7
Journal	International Journal of Educational Development
Volume	108
Early online date	11 May 2024
DOIs	https://doi.org/10.1016/j.ijedudev.2024.103055
Publication status	Published - Jul 2024

Keywords

Education
Out-of-school
Schooling
Government revenue
Governance
Government effectiveness
Corruption

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10.1016/j.ijedudev.2024.103055Licence: CC BY

Hall_2024_IJED_Model-impact_CC
Copyright © 2024 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Final published version, 1.3 MBLicence: CC BY

1 Finished

GRADE and Child rights: GRADE and Child rights - Reprogramming Global Tax Policies
O'Hare, B.A.-M. (PI)
Medical Research Council
2/05/22 → 1/03/23
Project: Standard

2 Other report
2 Article
1 Paper
1 Working paper

Special Drawing Rights (SDRs) and the Sustainable Development Goals (SDGs)
O'Hare, B.A.-M., Hall, S., Masiya, M. & Hurley, G., 12 Mar 2025, (Accepted/In press) p. 2-10. 10 p.
Research output: Contribution to conference › Paper › peer-review
Over 18 million girls missing school in Africa as continent loses USD29 billion in education funding through flawed taxation
O'Hare, B.A.-M., 13 Feb 2024
Research output: Book/Report › Other report
Breaking out of the bubble to transform education financing: how the strategic finance agenda from the 'Transforming Education' summit could deliver breakthroughs in 89 countries
O'Hare, B.A.-M., 15 Sept 2023, Online. 18 p.
Research output: Book/Report › Other report

Cite this

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title = "A model of the impact of government revenue and quality of governance on schooling",

abstract = "When governments have more revenue, they spend more on human capital, and spending is more effective in well-governed countries. Here, we use an equilibrium correction model to empirically investigate the relationship between government revenue per capita, six indicators of quality of governance, and school attendance, using an unbalanced panel dataset that includes nearly all countries. The results suggest a strong effect over time: as government revenue increases, school attendance rates increase, and the magnitude of this influence is mediated significantly by a country{\textquoteright}s quality of governance. Interestingly, the impact of governance is more pronounced in primary education than it is in lower or upper secondary education. This model offers the ability to demonstrate the impact of increases and decreases in government revenue in an individual country while accounting for the impact of revenue on governance and the impact of both revenue and governance on school attendance.",

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AB - When governments have more revenue, they spend more on human capital, and spending is more effective in well-governed countries. Here, we use an equilibrium correction model to empirically investigate the relationship between government revenue per capita, six indicators of quality of governance, and school attendance, using an unbalanced panel dataset that includes nearly all countries. The results suggest a strong effect over time: as government revenue increases, school attendance rates increase, and the magnitude of this influence is mediated significantly by a country’s quality of governance. Interestingly, the impact of governance is more pronounced in primary education than it is in lower or upper secondary education. This model offers the ability to demonstrate the impact of increases and decreases in government revenue in an individual country while accounting for the impact of revenue on governance and the impact of both revenue and governance on school attendance.

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KW - Out-of-school

KW - Schooling

KW - Government revenue

KW - Governance

KW - Government effectiveness

KW - Corruption

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ER -

A model of the impact of government revenue and quality of governance on schooling

Abstract

Keywords

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Projects

GRADE and Child rights: GRADE and Child rights - Reprogramming Global Tax Policies

Research output

Special Drawing Rights (SDRs) and the Sustainable Development Goals (SDGs)

Over 18 million girls missing school in Africa as continent loses USD29 billion in education funding through flawed taxation

Breaking out of the bubble to transform education financing: how the strategic finance agenda from the 'Transforming Education' summit could deliver breakthroughs in 89 countries

Cite this