Abstract

University entrance examinations create a difficult time for parents and students in developing countries. Families are exhausted from tutoring expenditures, and students are under great pressure to succeed in their tests. Tight admission policies limit access to higher education and prevent a decrease in expenditure per student. In this paper, the competitiveness of university entrance exams is measured by the ratio of secondary education enrollment to higher education enrollment. To identify reasons for competitiveness, the following variables are considered, based on theoretical work; expenditure for education (primary/secondary/tertiary and total), GDP growth, GDP per capita, urban population, unemployment, population growth, sum of imports and exports, foreign direct investment, and public budget surplus. Results show that additional education expenditure does not reduce competitiveness. Unemployment and population growth are the most important determinants of an increase in candidates for entrance tests.

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