Investments in Education

• Author: Dinca G.
• Position: Transilvania University of Brasov
• Pages: 79-86

Bulletin of the Transilvania University of Braşo v

Series V: Economic Sciences • Vol. 12 (61) No. 2 – 2019

https://doi.org/10.31926/but.es.2019.12.61.2.10

INVESTMENTS IN EDUCATION

Gheorghiţa DINCĂ1

Abstract: The current article aims at measuring the influence of

government spending with education on the evolution of school performance

using the results of the PISA tests as a main indicator. The test scores of 15-

year-old students from Romania will be used in order to establish if there is a

causal relationship between school performance and government spending

on education. By means of a comparative analysis, this research paper

intends to highlight existing red flags in the educational system as well as

the financial and economic factors which need a more effective and

substantial financing.

Key words: education, government intervention, PISA test scores,

performance of the school system

1. Introduction

Financing a healthy and efficient educational system is a challenge for a multitude of

decision makers throughout the world. The benef its of education are countless, but the

costs surrounding the lack of educat ion are a reaso n for concern for any governmental

authority. This is the case for Romania, where hundreds of thousands of Romanian

children are deprived of education. According to PISA figures, between 37% and 40% of

the 15-year old children in Romania have great difficulties in reading, writing, and

maths. Children with disabilities or children who come from poor households, rural

areas or from the Roma communities have a poor representation in primary education

while also having the lowest test scores.

Even though Romania has the lowest rates in education in the EU, an upward trend

can be observed in the last couple of years. Nevertheless, the allocation of resources can

be considered unequal and inequitable, more funds being directed towards seconda ry

and tertiary education, thus neglecting the preschool and primary stages. Therefore, the

aim of this paper is to present possible measures that should guide policy makers when

trying to answer the following research question: Which are the financial and economic

incentives that Romania needs in order to obtain the best results in education?

The consensus among researchers in education i s that the best results of any

investments or public policies are observed when they target the early stages of

1 Transilvania University of Braşov, gheorghita.dinca@unitbv.ro