Does Distribution in Public Spending on Education Matter for Cameroon’s Economic Growth

Abstract

This paper analyzes the distribution’s effects of public spending on education (PSE) on economic growth in Cameroon. Government spend around 3.5 and 5 times respectively for children of secondary and higher education than primary level and the opportunity cost represents 5.5% of GDP in Cameroon at 2010. PSE are progressive at the level of primary education and regressive in the upper levels. We appreciated the effect of this distribution on growth over the period 1982-2012. Our results reveal that the still high level of inequality in public spending on education leads to negative rates of growth. While the primary school level acts negatively on growth, we find that PSE at high level have positive effects. The combination of various effects of PSE weakens the accumulation of human capital essential in promoting growth.

Keywords: Public spending on education (PSE), Education costs, Redistributive effect, Growth.

Jel Classification: D63, H52, I22, O55.

DOI: 10.7176/JEP/12-2-04

Publication date: January 31^st 2021