Patterns of Private Investments in Palestinian Higher Education: Potential and Constraints

Mahmoud Eljafari ()
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Mahmoud Eljafari: College of Business and Economics, Al-Quds University of Jerusalem

No 442, Working Papers from Economic Research Forum

Abstract: While the demand for higher education increased sharply between 1995-2005, Palestinian academic institutions (universities and community colleges) continued to suffer from budget deficits., Meanwhile, the role of the private sector in financially supporting the academic institutions is still insignificant. Also, the contribution of the Palestinian National Authority (PNA) to financing higher academic institutions is still inadequate. Currently, public funds paid by the PNA cover less than 10% of the academic institutions’ expenditures. In fact, the PNA has made it clear that it looks to academic institution to rely more on private finance. Thus, this study aims to come up with a set of policies required to enhance the capacity of private sector investment in higher education - whether partial or total. To accomplish this objective, an econometric model is specified and estimated utilizing primary data. A questionnaire id designed to collect primary data to assess the attitudes of the private sector toward investing in the Palestinian higher education. The results of this research are of interest to several parties, agencies and institutions, mainly ministries of education and higher education and labor and academic institutions. In particular, the study highlights the patterns of investments that should be applied by the private sector in the Palestinian higher education. It also focuses on the appropriate policy variables that could be employed to stimulate private investments in higher education and to enhance the integration between academic institutions and the private sector.

Pages: 19
Date: 2008-01-09, Revised 2008-01-09
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