Relationship between school expenditure and educational outcomes: A systematic literature review

Abstract

This article analyzes literature on the relationship between school spending and educational outcomes through a systematic literature review. Forty-five documents were collected from Scopus, Web of Science, ProQuest, SAGE Open, Wiley, and Scielo databases, covering the period from 2015 to 2022. The studies were classified into causal and non-causal research designs, and analyzed based on the policies and interventions addressed. Policies were categorized into additional financial aid, school funding reforms, capital expenditures, and changes in revenue sources. Influenced by the ‘credibility revolution,’ recent literature demonstrates a diverse array of applications and significant impacts of educational spending on outcomes, though most research focuses on developed countries. The studies demonstrate improvements in academic performance and educational progress, across different intervention types, particularly for students in vulnerable areas or with low school achievement. Consequently, analyses for developing countries like Brazil, where educational levels and per-student spending are lower, may yield different results and policy implications.