The Welfare Implications of Expenditure on Education and Public Expenditure in General in African Countries

This paper reports on research aimed at measuring the drivers behind public expenditure with specific reference to educational expenditure and the way in which welfare is affected by such expenditure. The empirical estimations are carried out using a public choice model on a panel of 15 selected African countries over the period 1995-2004. The results show that government expenditure on education is resilient to shocks and the education sector is not seriously affected by allocative changes that favour corruption. Expenditure on education in the countries included in the study generally comply with the guidelines set by the IMF in terms of their fiscal adjustment programs.