Determinants of local public expenditures on education: empirical evidence for Indonesian districts between 2005 and 2012

Ivo Bischoff () and Ferry Prasetyia ()
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Ferry Prasetyia: Brawijaya University

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: We provide an empirical analysis of the factors that drive expenditures on primary and secondary education in Indonesian districts. We use a panel-data set covering 398 districts between 2005 and 2012. We account for the impact of socio-economic, political and geographical factors on expenditures per pupil and on the share of the overall budget spent on education. Our results are in line studies from other countries showing that educational expenditures are rising in the municipalities’ fiscal capacity. Landlocked districts are found to spend less on education than non-landlocked ones. We find some support for the notion that the share of educational expenditures in total expenditures increases in the demand for education, though our indicators for demand are not associated with higher expenditures per pupil. Somewhat surprisingly, the characteristics of the local municipal council do not influence educational expenditures.

Keywords: Indonesia; local government; educational expenditures; determinants (search for similar items in EconPapers)
JEL-codes: H75 I25 N35 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2015
New Economics Papers: this item is included in nep-dev, nep-edu, nep-pol, nep-sea and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201532

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