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ID: 153100

Do poverty reduction programmes foster education expenditure? new evidence from Rwanda / Hooimeijer, Pieter; Nkurunziza, Joseph ; Broekhuis, Annelet

Hooimeijer, Pieter	Journal Article
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Summary/Abstract

The Rwandan Government has implemented various education policies that contribute to higher enrolment in education, but has become aware that these policies might be less effective for children from poor families. This study investigates the contribution of poverty reduction programmes on education expenditure of households. Using a multi-level regression analysis, combining district data on labour markets with detailed expenditure data on 7,230 households, it teases out the effects of several social protection programmes. The results show that access to health insurance and to waged work are positively related, while direct financial or in kind support are negatively related to paying into the children’s schooling. Non-agricultural employment opportunities in particular seem to stimulate education investments. Reducing the vulnerability of households might provide more equal access to these opportunities.

Key Words

Rwanda ; Poverty Reduction ; Employment Opportunities ; Education Expenditure ; Resources Dilution

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ID: 162551

Guns for Butter? Empirical Evidence from China / Xu, Yingying

Xu, Yingying	Journal Article
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Summary/Abstract

This study examines the causal nexus between defence spending and education expenditure in China using the bootstrap Granger full-sample causality test and sub-sample rolling window estimation. The full-sample result indicates that there is no causality between defence spending and education expenditure. By adopting a time-varying rolling window approach to revisit the dynamic causal relationships, this article identifies a negative unidirectional causality running from education expenditure to defence spending. The finding suggests that it is the education expenditure crowds out defence spending in China rather than reverse. No causality is demonstrated from defence spending to education expenditure, indicating that an increase in military spending will not crowd out expenditure on education. The results could be partly explained by that the education expenditure in China is below the requirement of corresponding economic growth, urging for more financial budget. Whereas the findings support a negative trade-off between defence and education expenditures, they refute the theory of ‘guns for butter’.

Key Words

Defence Spending ; Bootstrap ; Education Expenditure ; Rolling Window ; Time-Varying Causality

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