The determinants of success in Baccalaureate in Morocco : An analysis using spatial panel data Jabrane amaghouss1 (GRES, Cadi Ayyad university) Ibourk (GRES, Cadi Ayyad university) 1. Abstract: Morocco has worked since independence to develop its education and training system to face double challenge of upgrading and extension. Despite the reforms, there is a persistent weakness of the Moroccan educational system and a process of catching up is still far. Thus, we observe the contrasts between the developed regions (Rabat and Casablanca respectively administrative and economic capital) and other regions especially the mountainous one. Spatial analysis is widely discussed by reference to the dynamics of monetary variables (income, earnings, GDP ...). Those based on socioeconomic variables is rare. The objective of this research is to explore the extent of spatial disparities in education, test the convergence performance of the Moroccan educational system (approached by the success rate in the Baccalaureate) in a spatial perspective and to analyze the determinants of these inequalities ((especially those related to the school context.) we rely on data from the Ministry of Education (2009 to 2013). we are mobilizing the techniques of multivariate analysis, Exploratory Analysis of spatial Data and techniques of spatial econometrics especially recent developments in spatial panel data econometrics. results to be obtained allow to draw some implications of economic policies. Key words : Baccalaureate, Morocco, spatial, panel data, inequality 2. Introduction Education is a key factor in the development of any country, and differences in living standards are largely attributed to him. It contributes to the reduction of poverty and inequality, but at the same time, it can lead to exclusion and marginalization (World Bank, 1999). Whatever the level of accumulation of human capital contributes to economic growth 1 The corresponding author. Email : [email protected] of countries ( Mankiw et al 1992 . Aghion and Howitt, 1998, Benhabib and Spiegle, 2005), its accumulation at the local level could be a good way to measure the changing economic performance of regions (Cardenas and Pontoon, 1995). For example, wage differences between regions are largely due to the level of education in Brazil (Azzoni and Servo, 2002). In general, regions that invest more in human capital accumulation are developing rapidly. The importance of education in the development process of developing countries has given rise to several studies (World Bank, 2004; Bonal, 2004, Unesco , 2004; Amaghouss and Ibourk, 2013). All these studies analyze the indicators of education in a classical perspective (educational performance between sexes, between rural and urban areas). However, very few studies proceed to the analysis of educational variables in a spatial perspective. During the last decade, there has been a growing recognition of the importance of geography and space in the analysis of economic convergence (Janikas and Rey, 2005; Mossi et al , 2003. Dietrich Brauch and Monasterio , 2009). This convergence (between countries or within the same country) is widely discussed with reference to the dynamics of monetary variables (income, wages, GDP...). The analysis of the spatial convergence (within the country) based on socioeconomic variables is rare. These indicators can be a complement to understand the spatial dynamics of the regions. Baumol et al. (1994) argue that the analysis of social variables could be the best way to study the differences in performance between regions especially in the developing countries. Educational indicators can provide a more comprehensive understanding of the asymmetries and imbalances in a given space and between different regions. In Morocco, the approximation of the levels of economic development is a major concern of regional policies. Despite various attempts by various governments, Morocco is still suffering, even before the independence, from a "regional imbalance" . This problem manifests itself in particular by the existence of a large number of poor regions with low school performance. It should also be noted that the Moroccan provinces are characterized by the persistence of a dual structure between developed area ( the axis Kenitra – Settat) and a periphery in trouble. Our goal in this paper is to show that taking into account the spatial dimension of the data, that is to say, the location of the observations with respect to each other, allows to incorporate some lessons and try to assess how extent the results usually found may be modified. Models of spatial econometrics are required to justify their teachings in analyzing spatial disparities, why geographic should be considered in the context of convergence models. The objective here is to identify the relationship between spatial location and disparities in education in Morocco. More specifically, it is shown that the inclusion of spatial disparities renews the debate on the effectiveness of regional development policies. These inequalities cannot be neglected and they allow a better understanding of the process of convergence between provinces. It seeks to show that educational performances are related to distribution patterns of educational services in the territory. It is to describe and visualize spatial distributions, identify atypical locations and outliers, detect spatial association patterns and suggest spatial regimes or other forms of spatial heterogeneity. More specifically, it seeks to answer the following questions : What are the characteristics of spatial disparities in Morocco? It comes down to analyze basically the evolution of geographical disparities and the depth of interdependence amongst the Moroccan provinces by constructing a Synthetic Spatial Index for Education (SSIE) based on the method of the Principal Component Analysis. How should we take into consideration these spatial disparities in our analysis of the determinants of success in the Baccalaureate in Morocco? This work allows us to offer geo-targeting policies aimed at reducing disparities between the provinces. Specific regional development policies aimed at reducing the spatial divergence, ie to attend the convergence between the best performing provinces and backward provinces. Morocco was part of a broader process of regionalization; space groups obtained could be a proposal for the next territorial division under Morocco. 3. Emergence of the theory of spatial justice: an overview of the literature Historically, Bowman (1942) was the first to rethink the geography as a determinant of justice. If one believes Sorre (1957), classical geography does ignoring ethical considerations. In France, the work of Jean Gottmann makes emerge explicitly the link between geography and justice2. In the 1970s, we have stated a progression of a new geographical welfare flow. Returning to Marx's theory from a spatial perspective, Peet (1971) argue that inequality and poverty are the functional components of the capitalist mode of production. Capitalism necessarily produces unequal social structures. They are transmitted from one generation to another. Assuming that the social geography of the city consists of a hierarchy of community settings, it says that the capitalist mode of production reproduces the hierarchical structure of classes. 2 2 In his theory of justice, Rawls (1971) never mentioned the concept of space. David Harvey does not use the term spatial justice but he uses the term "territorial social justice" The persistence of poverty in American cities is the result of breeding an army of American reservation. It concludes that inequality and poverty cannot be eradicated without fundamental changes in the mode of production. In an original way, David Harvey has the merit to transpose the concept of justice to questions of geography. His conception of “territorial social justice” is an adaptation of Rawls (1971) prepositions. In 1973, he published a work entitled Social Justice and the City. His work marks a break with the traditional spatial analysis and new quantitative geography (Brennetot, 2010). Therefore, injustice is defined in relation to non-compliance with one of these two principles. This author substitute "primary goods" by the concept of "needs" that includes "food, housing, medical care, education, social and environmental services, consumer goods, recreational Opportunities, neighborhood amenities, transportation facilities" (Harvey, 1973, p. 102). The author joined the Marxist interpretation of urban development developed by Peet (1971), that is to say, he denounces the distributive criterion of Rawls. Harvey is also committed to prove the limits of liberal reformist model of territorial planning and operate a critical study of spatial structures of capitalism. The link between geography and justice also questioned Coates et al. (1977). They argue that government strategies of welfare state neglect equity in the spatial distribution of welfare. In another study, Smith (1979) takes the words of Rawls from a spatial perspective. Spatial justice is not translated in the elimination of regional inequalities but in building equity. In Chapter 3 of the Geography of welfare, Bailly (1981)3 provides a critical analysis of the principles often used to assess the level of well-being. He advocates the consideration of cultural and spatial criteria. Starting from the center-periphery model of Amine (1973), Reynaud (1981) extends this model to questions of spatial justice. It develops a theory of territorial injustice in which he identifies divergences between spaces as disparities that develop between conflicted "sociospatial" groups. Smith (1994) develops an evaluation model of welfare in which he proves that the overall standard of living in the United States can hide spatial disparities. According to him, the criterion of Lorentz and Rawls' principle of difference can substitute the principle of Pareto optimum. 3 "The ideal society is no more the one in which a more optimal allocation of production factors and resources exist, but the one that promotes the development of local cultural values”(Bailly 1981, p.99). After the remarkable neglect of the field of spatial justice in the 1980s4, 1990s and 2000s marked a renewed interest manifested by the multiplication of work on spatial justice. The theory of spatial justice now covers many dimensions of globalization (Bret, 2009), urban cohesion (Connolly et al, 2009; Soja, 2010); natural areas (Proctor and Smith, 1999; Lee, 2004); borders (Nussbaum, 2006), education (Mills, 2008; Habibi et al 2003.) scales (Fraser, 2008) and the environment (Flipo, 2007). If we believe Bret (2009), the center-periphery model5 is the correct transposition of spatial inequalities. Indeed, the center holds decision-making powers. In addition, the resident population enjoys better living conditions at multiple scales (level of income, access to the labor market, education, health…) These spaces are erected in the center because they attract capitals, products and especially the flow of men (Bret, 2009). The periphery is defined by opposition to the center. In general, it ensures unfavorable development's prospects. Some research works wonder if this inequality between center-periphery constitutes an injustice which arise therefore the inquiry of Bret (2009). He wondered whether the spatial equality is consistent with the principle of maximum? The answer to this problem depends on the potential role of the center relative to the periphery. In addition to its ability to attract, produce and distribute wealth, the center can be a lever for development. In this context, territorial inequalities are not an injustice because the periphery takes advantage of its position and is in a less favorable position than if there was no central state. This is materialized by the transfer to the periphery of the wealth produced in the center. Contrariwise, spatial inequalities can be unfair if the center develops to the detriment of the periphery. Having conducted this overview of the main trends in the theory of spatial justice, can we then define these trends at the sectoral level especially within that of education? This hypothesis is a subject of empirical verification in the following section. 4. Determinants of school performance : Literature Review 4.1 Quantity Vs. Quality of education In a theoretical framework, education yields to two kinds of returns. The first one is private while the second is social. Put simply, private return belongs to individuals so that every additional year of schooling yields an increase in future income. Furthermore, social return ensures a social cohesion due, among others, to the reduction of criminality, the 4 5 The concept of spatial justice appears despite all within a few summary work (Johnson et al, 1983.Brunet,1990). Recall here that the center-periphery model can be applied to all geographical scales, from local to global strengthening of citizenship (improving vote quality, creation of NGOs…). Ideally, social return should exceed private return. Some of the existing literature argues that a link exists between education and growth as depicted by human capital theory (Mincer, 1958; Shultz, 1960, 1997 ; Becker, 1964 ; Denison 1962, 1979). In order to test this theory, education can be defined empirically in terms of quantitative variables as well as qualitative variables. Quantity of Education and Economic Performance In a microeconomic framework, the Mincer earnings function (Mincer, 1958, 1974) estimates educational returns, whereas in macroeconomics the link between education and growth has never been proved, at least unanimously. Barro (1991), for instance, found a significant positive relation between initial human capital ( rate of enrollment in 1960) and growth. In 1992, Mankiw, Romer and Weil conclude that their results confirm the extended Solow model. Benhabib and Spiegel (1994) estimate a Cobb-Douglas production function in which physical capital as well as human capital are considered as production factors. Their results revealed that human capital contributes to economic growth throughout two mechanisms. First, the level of human capital influences directly the rate of technological innovation produced locally as found also by Romer (1990). Second, the stock of human capital affects the speed of the adoption of foreign technology, this assertion comes along with the findings of Nelson and Phelps (1966). In a whole, according to the authors, all countries would converge to the same level. - Quality of Education and Economic Performance The development of the qualitative approach of education has been initiated mainly in the US. Indeed, the Coleman report (Coleman et al., 1960) is one of the earliest works that established the relationship between educational outcomes and education resources. Moreover, Mulligan (1990) and Lazear (2003) adopted a direct estimation of the impact of achievements obtained in standardized tests. Actually, they used a representative database of individuals, entering to the labor market, who finished their education. Their results suggest that an increase of the standard-error of mathematical achievements increases earnings by 12%. Based on the higher education national survey of 1972, Murnane, Willet, Duhaldeborde and Tyler (2000) investigate empirically the link between quality of education and individual earnings. Results reveal that earnings for men and for women respectively increase by 15% and 10% when the standard-error of the test score increases by 1%. However, the quality of education in developing countries is overlooked. Hanushek and Wößmann (2007) suggest that educational returns observed in developing countries are higher than those observed in developed countries. Since the 1990’s, several empirical works used scores of standardized test in order to test the relation between quality of education and growth. Hanushek and Kimko (1995, 2000) constructed an index of education quality, based on standardized tests. Their findings are in favor of the positive relation between education and growth in the 1960-1990 period. Furthermore, Barro (2001) used several standardized tests and combined it with quantitative indicators of education. He found that both quality and quantity of education have an impact on growth, however quality has a greater impact on economic growth. Wößmann (2002, 2003a) suggests that the proportion of variation in the level of economic development due to human capital increases if the quality of education is considered. Bosworth and Collins (2003); Ciccone and Papaioannou (2005) extend the works of Hanushek and Kimko, their results confirms those of Barro (2001) regarding the importance of the role of education quality on growth. 4.2 Determinants of schooling achievement 4.2.1 The intrinsic characteristics to the student Some theorists explain differences in academic performance by individual differences among students. They consider that school performance is positively correlated with intelligence quotient (IQ). Genetic current explains school failure by disorders and deficiencies that are intrinsic to the individual which may be detected by testing. Theproponents of this current (Debray-Ritzen, 1978; Jencks, 1973; Le Gall, 1954; Terman, 1917); cited by Akoué (2007) argue that academic success is a function of intelligence included in the genetic heritage. Maehr, Pintrich & Linnenbrink (2002) show that the motivation and self-perception has links closely with academic success. 4.2.2 The home environment Several studies have developed the impact of the family environment, with a particular focus on the cultural heritage. The academic performance of the student depend on the cultural and linguistic bases held by the family environment. The children from higher socio-economic level of families develop habits and tastes that are directly transferable in schools (Bourdieu, 1966, p.329). Mingat (1991) observed that the level of student achievement is strongly linked to social class students. Children whose father exercises unskilled employment have the lowest level acquisition, while children whose father is a technician have an average superior results. Thus, the school "transforms cultural differences in inequality success "(Duru-Bellat, 2003, p.33). 4.2.3 The school context While most individual and social factors are not controllable by agents school, those related to the school context are controllable. Heyneman and Loxley (1983); cited by Duru-Bellat (2003), showed that school factors were more influential regarding the success children, that family factors. Among the factors related to the school context, we distinguished class size (Fuller (1986); Akoué (2007)), Pedagogical Practices teachers (Lockheed and Verspoor (1990); NLEP (2001)) School equipment (Ouellet (1987); Psacharapoulos and Woodhall (1988)). 5. Methodology As a first step, we analyze the spatial disparities of the rate of successful bachelor (and by branch: scientific, technical and literary). In order to properly account for spatial interactions, these methods take into account the relative positions of the data through the inclusion of spatial weights matrix. Thus, the comparison of a space observation with its neighbors is taken into account directly. In addition, these methods provide measures of global and local spatial autocorrelation (Le Gallo and Lame-Orain, 2004). In a second time to confirm the results to be obtained by the exploratory analysis, we proceed to the confirmation by the test of the hypothesis of absolute convergence of the Moroccan provinces over the period 2013-2009. The estimated cross-sectional model of β-convergence is our starting point. Formally, the model applied to our data sample is defined by the following expression: TX bac = α + βLog (bac) 2009 + ε With TXbac is the growth rate of success in baccalaureate. Log (bac) is the logarithm of the rate of success in baccalaureate and ε is an error term independent and identically distributed. In the presence of spatial autocorrelation, the estimated equation by OLS (ordinary least square) gives biased coefficients. So the first test to be performed is on the presence of spatial effects. Third, we analyze the determinants of success in baccalaureat. We focus our attention (due to data availability) on the determinants related to the school context. The spatial regression of the model using panel data can be written as follows: bacit=Xitβ+ai+γt+vit bac is the success rate of bachelor with X is the set of explanatory variables. In this study, X includes the number of rooms, the rate of fellows, the number of teachers, the number of administrative staff, the number of service personnel, the number of beneficiaries from transport services, the rate of beneficiaries from the boarding. Taking into account the spatial autocorrelation, the model can be done in several ways: By spatial lag ((Case et al, 1993; Brueckner, 1998), a spatial error ((Rey and Montouri, 1999 Baumont et al, 2001) or by both. These models have different interpretations depending on the nature of the convergence process. The objective of this research is to analyze what is the model that best represents the problem of spatial dependence. We distinguish five general types: 1) SAR model : (bac)it = ρW(bac)it+Xitβ+ai+γt+uit Where W is the weight matrix, a s a single effect, γ is a time effect and u is an error term. 2) The SDM model : bacit=ρW(bac)it+Xitβ+WZitθ+ai+γt+uit , where Z is the matrix of spatial lagged regressors 3) The SAC model : bacit=ρWbacit+Xitβ+ai+γt+vit , vit=λEvit+uit , 4) The SEM model : bacit=Xitβ+ai+γt+vit , vit=λEvit+uit . 5) The GSPRE model: bacit=Xitβ+ai+vit , ai=ϕWai+µi , vit=λEvit+uit , All data come from the Ministry of Education during the period 2009-2013. 6. Results 6.1 Descriptive Statistics Table: Rate of success in Baccalaureate per branch From the table, we observe that the highest success rates are observed for scientific courses followed by literary branches and finally by the original teaching. Table : Evolution of numbers of bachelors in Morocco The table clearly shows that the evolution of the graduates of the workforce experiencing an upward trend. Table : Evolution of numbers of bachelors in Morocco by province 6. The implications of this research First, it is clearly obvious, from the global analysis, that there is a high spatial disparity in the field of education among provinces as well as a poor performance of the Moroccan educational system. Firstly, the concentration of provinces within a region having the same characteristics is confirmed. Indeed, the significance of the quadrants EF (haven of wealth) and FE (black sheep) is low throughout the period of study. Secondly, two poles have appeared. 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