Efficiency of public expenditure on education: comparing Croatia with other NMS

Amina Ahec Šonje, Milan Deskar-Škrbić and Velimir Šonje

MPRA Paper from University Library of Munich, Germany

Abstract: Modern economies are becoming more knowledge-intensive and service-oriented, which makes human capital more important than ever for mid-term and long-term growth. Therefore, education, the main channel of governments’ influence on human capital formation, became important research subject in the field of economic growth. This paper examines efficiency of public expenditure on secondary and tertiary education in the New Member States (NMS) in EU ; only efficient government spending can generate adequate returns in terms of contribution to economic growth. Data Envelopment Analysis (DEA) is applied to assess relative technical efficiency of public expenditure on secondary and tertiary education in NMS, with a particular focus on Croatia. Input variables are public expenditure on education per student and as % of total education expenditure, while output variables for secondary education are PISA results and for tertiary education share of unemployed with a tertiary education and Shanghai ranking of leading national universities. The results show high inefficiency of public spending on education in Croatia.

Keywords: Education; technical efficiency; public expenditure on education; Data Envelopment Analysis; New Member States EU (search for similar items in EconPapers)
JEL-codes: C61 H52 I2 I25 I28 (search for similar items in EconPapers)
Date: 2018-01-02, Revised 2018-02-10
New Economics Papers: this item is included in nep-edu, nep-eff and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in INTED2018 Conference Proceedings (2018): pp. 2317-2326

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:85152

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