International Journal of Education Economics and Development (8 papers in press)
Child Labor and School Dropout in Least-Developed Countries: Empirical Evidence from Lao PDR
by Thidavong Xayavong, Piriya Pholphirul
Abstract: Even though topics related to child labor and school dropout have been studied worldwide, little attention has focused on child labor and school dropout in the least-developed countries. This paper examines the impact of child labor on school dropout by using national representative data from the Labor Force and First Child Labor survey in the Lao PDR, which serves as a case study of a least-developed country. The endogeneity of child labor to school dropout was controlled by using an average wage of children by province as an instrumental variable. Findings indicate that child labor, especially with regard to girls, has a strong impact on driving school dropout. Our estimations also show that parental educational attainment, particularly mothers education, seems to show a significant effect on reducing the probability of dropping out. With respect to family economic status, results indicate that the probability of children dropping out tends to be greatest for children from poor families. Our evidence supports the need to provide the type of free education programs that have been implemented in all developed countries but which have not yet been established in least-developed countries such as the Lao PDR. At the very least, given limited government budgets, support can be targeted to help vulnerable groups and poor families.
Keywords: School Dropout; Child Labor; Least-Developed Countries; Lao PDR.
Is the interaction between human capital and financial development one of the determinants of FDI in emerging markets?
by Kunofiwa Tsaurai
Abstract: The study investigated two things. Firstly, the determinants of FDI and secondly, whether the interaction between human capital and financial development enhances FDI inflows into the emerging markets. The dynamic generalised methods of moments (GMM) framework was employed with panel secondary data ranging from 1994 to 2014. The lag of FDI, GDP per capita, savings, trade openness and human capital development had either a positive and significant or positive and non-significant influence on FDI inflows into emerging markets. The interaction between (1) human capital development and stock market value traded and (2) human capital development and stock market capitalisation enhanced both the size and significance on FDI inflows. On the other hand, the interaction between banking sector variables and human capital development (see model 1 and 2 results) reduced the negative impact on banking sector development variables on FDI inflows. The implication of the study is that emerging markets are urged to (1) enhance economic growth, savings mobilisation, human capital development, financial development and trade openness and (2) reduce inflation levels in order to increase FDI inflows. They should also concurrently implement policies aimed at developing their banking sector, stock markets and human capital development if they intend to enhance FDI inflows.
Keywords: FDI; Financial Development; Human Capital; Emerging Markets.
What Affects Average Net Price at Four-year Public and Not-for-Profit Private Institutions in the United States?
by Marie Elaine Gioiosa
Abstract: Higher education costs are rising. The literature points to varying factors for the increases: the lack of efficiency on the instructional side, the growth in administrative expenses as well as the decrease in state appropriations. But do these items impact average net price at four-year public and private not-for-profit institutions? This study looks at the relationship between average net price and these factors considering the fixed effects by state.
Keywords: average net price; instructional expenses; administrative expenses; state appropriations; four-year institutions.
The impact of HIV and AIDS on aggregate labour productivity: evidence from sub-Saharan Africa
by Shamzaeffa Samsudin, Danjuma Maijama'a, Shazida Jan Mohd Khan
Abstract: A review of literature indicates that previous studies concentrate on the effects of HIV/AIDS on labour productivity at individual firms. This study investigates the impact of HIV prevalence rate and AIDS on aggregate labour productivity at the macroeconomy level in sub-Saharan Africa, using panel data from 1990-2013. The analysis considers both the instantaneous effect shown by HIV and the effect after the disease converts to AIDS. The sensitivity of the results was also examined within two sub-samples. System generalised method of moments (GMM) estimator was used in the estimation. HIV prevalence has significant negative effect on aggregate labour productivity in both the full sample and the two sub-samples. AIDS has a positive influence on aggregate labour productivity in the full sample and Eastern and Southern Africa sub-sample. This is, however, not beneficial. Rather, it is detrimental, as it was attributable to reduce availability of labour due to increase in mortality.
Keywords: HIV prevalence rate; AIDS; aggregate labour productivity; sub-Saharan Africa.
Livelihood patterns and dynamics among low-income households in the Eastern Cape province
by Munacinga Simatele, Forget M. Kapingura
Abstract: This paper discusses the nature of livelihood strategies within the Eastern Cape province of South Africa. The analysis is based on a survey conducted among 2000 households throughout the province. Content and statistical analysis is used to summarise the results. The role played by government structures in the process of livelihood implementation is discussed. Links are drawn between local community resources and the diverse livelihood strategies that households engage in. The results show that there is a very weak link between resources in communities and associated livelihood strategies. Moreover, institutional structures tend to inhibit successful exploitation of such resources in some cases. Regulatory compliance and attendant costs also constrain participation in sustainable resource use.
Keywords: livelihoods; sustainability; Eastern Cape; poverty.
Education and economic growth: a co-integration approach
by Derick Taylor Adu, Elisha Kwaku Denkyirah
Abstract: In the wake of numerous educational policies and huge education investments in Ghana, it is imperative to investigate the effect of education on economic growth. Using the autoregressive distributed lag approach to co-integration we find that in the short-run primary/basic education has a significant positive impact on economic growth. In the long-run, both primary and secondary educations have a positive impact on economic growth. Tertiary education has no significant effect on economic growth both in the short-run and long-run. Furthermore, government expenditure on education has no statistically significant effect on economic growth which could imply that the expenditure is not directed towards the quality of education but rather quantity (enrolment). We conclude that educational policies should focus not only on the basic and secondary education but also the tertiary education, incorporating research and development into the curricula, and government expenditure should be directed towards the quality of education.
Keywords: education; economic growth; policy; co-integration; Ghana.
Education-economic growth nexus in BRICS countries: does financial development matter?
by Kunofiwa Tsaurai
Abstract: The paper explored education-finance-growth nexus in BRICS (Brazil, Russia, India, China, South Africa) using GMM approach with panel data (1994-2014). According to the endogenous growth theories, both human capital and financial development positively influence economic growth. However, studies that have investigated the complementarity between human capital and financial development in affecting economic growth are very scant. The few available are not specific on education in the finance-growth nexus. Instead, they focused on human capital which is quite broad and might not be helpful in crafting education-financial sector policies that enhance growth. The study observed that education expenditure positively but non-significantly influenced growth in all the seven models. Moreover, the positive impact of education expenditure interacted with different financial development indicators either increased or became significant. BRICS countries are therefore urged to increase expenditure towards education and at the same time deepen their financial systems in order to experience more growth.
Keywords: education; growth; financial sector; BRICS; Brazil; Russia; India; China; South Africa.
Multidimensional poverty and the factors influencing the multidimensional poverty status of Bodos': a case study of Udalguri district, Bodoland
by Shrabanti Maity, Jeroen Buysse
Abstract: The aim of this paper is to identify the multidimensional poverty situation and determination of the factors that influence the multidimensional poverty of Bodos in Udalguri district, Bodoland. We applied multiple correspondence analysis (MCA) on the household level primary data for 333 Bodo households for constructing household level multidimensional poverty index (MPI). The data was collected by multistage stratified random sampling covering twenty-two villages of eleven blocks. The MPI value for the study area predicts that the area is poor and health, literacy, employment opportunities and the monthly consumption expenditure of the family are the most important influencing factors.
Keywords: MPI; multidimensional poverty index; MCA; multiple correspondence analysis; Bodo households; Udalguri district; literacy; health.