Secondary education spending and school attendance in South Africa: An ARDL approach

Abstract

The education system in South Africa is perceived to be expensive, inefficient, and under-performing relative to its peers. Hence, this study aims to investigate the relationship between secondary education spending and school attendance in South Africa through econometric modelling. The ARDL Bounds test revealed that the variables have long-run relationship. Furthermore, the long run estimates indicate that both secondary education spending, household incomes, and urbanisation are statistically significant in explaining variations in school attendance. Granger Causality test indicates uni-directional causality from secondary education spending to secondary school attendance. Thus, to close the gap in providing quality education in SA, a wide range of interventions are needed. The focus should be on increasing enrolment rates and narrowing dropout rates, more especially those that are due to lack of funding. In addition, school officials should be provided with the necessary financial and administrative skills to receive, distribute, and utilise funds efficiently.