An Analysis of the Determinants of Education Expenditure in Thailand

Abstract

This integrative study builds on the established theories of public policy analysis, economics, and public finance by empirically investigating and analyzing the determinants of public expenditure on education in Thailand. For the purposes of this study, it is posited that education expenditures are determined by multidimensional factors. A number of economic-demographic, political, institutional, and decision-making theories are therefore examined, together with the concept of education. This study recognizes and quantifies education expenditure by both types and stages of education according to the allocation of government budget and the education system in Thailand. The results reveal that education financing policy in Thailand is mainly determined by last year's expenditures. Industrialization also increases the total education expenditure. This is what the incrementalism theory and Wagner's Law postulate, respectively. Moreover, unemployment has an inverse impact on several types of education expenditures. The results imply that the Thai government mainly takes into account only certain factors and neglects to incorporate the importance of demographic and educational indicators when allocating education expenditures.

Determinants of Health Expenditures in ASEAN Region: Theory and Evidence

“…Political system, institutional state structures and political situations have been used to explain the welfare expenditures in OECD countries (Sanz & Velázquez, 2007). In addition, a lot of literature focuses on the relationship between globalization, industrialization, urbanization and the welfare spending, but the sample countries used for those studies are mostly OECD countries (Hollanders & Koster, 2010) or limited to just one ASEAN country (Sagarik, 2013).…”

Public Education Spending and Income Inequality in Bangladesh

“…Since expenditures on education are expected to have a redistributive impact, BIA is centred on assessing whether public spending is progressive, that is, whether it improves the distribution of welfare, household income or expenditure. It estimates how much the income of a household would have to be raised if the household would fully pay for the subsidized public services [4], [7], [10].…”

Analysis of the Determinants of Public Education Expenditures in Bangladesh

“…Political factors are the critical role player under the purview of this theory. It is based on the neoclassical economic theory and postulates that everybody like politician, civil servants, voters, all are working for their self-interest, and for the greater interest of profit maximizesthat is critical nature of human in the developing country (Sagarik, 2013). In a nutshell, this is the self-driven mutual interaction between decisive voters and politicians which often shape the public policy as well as public expenditures.…”

“…In addition to these, variables of education indicators also been taken into consideration, since these variables may dictate the demographic prototype in the scenario of education policy means education expenditure as well as are pertinent to the socio-political context of Bangladesh. This includes the enrollment rate, number of schools, and student-teacher ratio which are used by many empirical analyses, including Ram (1995), Hanushek and Rivkin (1997), Fernandez and Rogerson (1997), Kempkes (2010), Grob and Walter (2007) and Sagarik (2013). ISSN 2161-7104 2019 Public expenditure also has to do with governance indicators which implies that a system of good governance that particularly incorporates the government and civil service system that are transparent as well as accountable which enhances the trust as well as cooperation among citizen, businessman and the government; and the democratic political system which can protect political freedom along with political rights.…”