BI-DIRECTIONAL ASSOCIATIONS AMONG EDUCATIONAL QUALITY, INSTITUTIONS AND SOCIAL INCLUSION: SEM ANALYSIS

The new Development Economics is not only considerate about improving the material conditions of any society, but also enhancing the terms on which citizens can actively participate in a society’s development; in broader terms this is called social inclusion. High literacy rates, alone cannot breed a socially inclusive society. Accordingly, not only quantity but also quality of education is equally important. This study explores the bi-directional relationships between educational quality and social inequality in inclusion and the role of their determinants, most importantly impact of institutions on social inclusion for four Asian countries. Educational quality has a positive and significant association with Social inclusion, teacher student ratio and primary education completion rate. Similarly, results supported the notion that improving education quality will affect social inclusion. Institutional change can play a significant role in such a case, which could only take place with public development policies based upon providence of quality and equity of education among masses.