Journal of Education Finance

abstract:

This paper links endogenous development, externalities, and higher participation in education with issues of student finance and equity in sub-Saharan Africa. The paper is based on new panel data for 43 African countries for 2000-2017, offering new findings for this recent period during which per capita growth in Africa has picked up significantly and about which there is great curiosity. The findings provide evidence that the external effects of lower levels of education lower fertility rates, and that secondary education supports democratization (improvement in political rights).

Together with prior literature the above builds a strong social scientific case about how these external effects of basic education lower the explosive population growth in sub-Saharan Africa through the education of women. This paper goes further to explore the role of government expenditure per student, a powerful driver of lower fertility and more democratization at the primary and secondary levels but not at the higher education level. The problem with inefficiency in financing higher education as large and costly per student room and board grants are provided to the children of the wealthy (who are likely to attend college anyway) with little resource recovery is found to lower its cost effectiveness in achieving per capita growth and development.