PERSISTENT ECONOMIC EFFECTS OF COLONIAL INSTITUTIONS AND EDUCATION OUTCOMES IN SOUTH AFRICA

Purpose: South Africa’s educational system made significant advances in financing and improving access to basic schooling since the end of apartheid in 1994. Despite these developments, the Eastern Cape province in general, and the Transkei region specifically, has experienced falling enrolment over the past two decades as thousands of students drop out of school each year. This paper investigates the long-term economic effects of colonial institutions - the Transkei Districts Councils - on primary school enrolment in Eastern Cape Transkeian magisterial districts Methodology: This paper investigates the long-term economic effects of colonial institutions, using a fixed effects regression methodology on a panel dataset for the years 2000 to 2013. Findings: The results show a larger disenrollment trend in districts that received District Council status over a century ago, than those that did not, showing the persistent effect of these political institutions. Originality/Value: The results imply that disenrollment experienced in the Eastern Cape province is rooted in history. This highlights the importance of economic history in analyzing present day development outcomes.