Cambodia Macroeconomic Impacts of Public Consumption on Education €€Œ a Computable General Equilibrium Approach

42 Pages Posted: 10 May 2018 Last revised: 16 Jul 2018

See all articles by Sothy Ear

Sothy Ear

Cambodia Development Resource Institute (CDRI)

Sokcheng Sim

Cambodia Development Resource Institute (CDRI)

Khiev Pirom

Cambodia Development Resource Institute (CDRI)

Date Written: November 1, 2016

Abstract

Employing the available social accounting matrix, this paper examines the impacts of different public education consumption schemes on Cambodian macroeconomics, the labour market and household welfare. The results from the simulation scenarios in the CGE model revealed that the reallocation of public spending from primary and secondary education to higher education produced a negative impact on the wage rate of low and fairly educated labour, dropped outputs, and reduced household welfare, which had adverse effects on macroeconomic variables in general. However, the shift of public spending from administration to the three education sectors, showed positive impacts on the economy, household income and welfare. Given the factor endowment structure of the Cambodian education sector, the policy that focuses on higher education by providing more spending to this sector did not yield results as good as keeping the initial education spending structure.

Keywords: public education spending, labour market, household welfare, CGE, simulation modeling

Suggested Citation

Ear, Sothy and Sim, Sokcheng and Pirom, Khiev, Cambodia Macroeconomic Impacts of Public Consumption on Education €€Œ a Computable General Equilibrium Approach (November 1, 2016). Partnership for Economic Policy Working Paper No. 2017-05. Available at SSRN: https://ssrn.com/abstract=3164263 or http://dx.doi.org/10.2139/ssrn.3164263

Sothy Ear (Contact Author)

Cambodia Development Resource Institute (CDRI) ( email )

56 Street 315
Phnom Penh
Cambodia

Sokcheng Sim

Cambodia Development Resource Institute (CDRI) ( email )

Phnom Penh
Cambodia

Khiev Pirom

Cambodia Development Resource Institute (CDRI) ( email )

56 Street 315
Phnom Penh
Cambodia

Register to save articles to
your library

Register

Paper statistics

Downloads
17
Abstract Views
130
PlumX Metrics