A situational-competence framework for economics education reform

Thesis Abstract

The study addresses the persistent mismatch between economics education and the dynamic demands of modern economies, where learners must apply theoretical knowledge to diverse real-world situations. Despite widespread reform efforts, gaps remain in how curricula cultivate situational competence—the integrated ability to analyze economic problems, adapt to context, and communicate policy-relevant recommendations across diverse stakeholders. The aim is to develop and validate a situational-competence framework that guides reform in undergraduate and postgraduate economics education, enabling institutions to design curricula, assessment, and teaching practices that nurture context-sensitive problem-solving. Specific objectives are (1) to identify dimensions of situational competence relevant to economics education through a scoping study and expert interviews; (2) to operationalize a theoretical framework incorporating contextual adaptability, methodological versatility, and communicative efficacy; (3) to develop validated instruments for measuring situational competence among economics students; (4) to examine the relationship between instructional strategies (case-based learning, active learning, and policy simulations) and gains in situational competence; and (5) to propose a scalable reform model aligned with university governance and national competencies frameworks. The study employs a mixed-methods design anchored in interpretivist and pragmatic paradigms. The population comprises economics undergraduates (N=1,200) and postgraduate students (N=600) across four public universities in a mid-sized economy, with a stratified sampling approach ensuring representation by year of study and specialization. In-depth qualitative data are obtained from semi-structured interviews with 40 faculty members and 20 policy practitioners to elucidate expectations and real-world application contexts. Quantitative data are collected via a newly developed Situational Competence in Economics Education (SC-EE) instrument, administered to the full sample, and performance data from standardized policy-analysis tasks. Instrument validity and reliability are established through content validity by a panel of three economists and three education researchers (CVR above 0.80), and a pilot study (n=120) with Cronbach’s alpha = 0.89. Data analysis combines thematic analysis for qualitative transcripts using NVivo 12, and quantitative analyses with confirmatory factor analysis (CFA) to validate the SC-EE construct, followed by structural equation modeling (SEM) to test the hypothesized relationships among instructional strategies, situational competence, and learning outcomes. Regression analyses are employed to examine the impact of pedagogical approaches on SC-EE scores, controlling for prior achievement, age, and gender. A nested analysis of variance (ANOVA) assesses variability across universities and programs. Model specification includes a second-order factor model representing situational competence and a mediation path whereby instructional strategies influence competence through enhanced reflective practice and policy communication skills. Key expected findings include (1) a robust, multi-dimensional SC-EE framework comprising contextual analysis, methodological flexibility, communicative efficacy, and ethical reasoning; (2) validated measurement invariance of the SC-EE instrument across undergraduate and postgraduate cohorts; (3) positive associations between case-based and policy-simulation pedagogy and gains in situational competence, mediated by reflective practice and collaborative problem-solving; and (4) significant cross-institutional variation explaining where reforms are most effective, linked to institutional support structures and faculty development. The study contributes to knowledge by operationalizing a credible theory of situational competence in economics education, extending the literature on competency-based reform beyond generic skills to context-sensitive judgment and policy-oriented communication. It offers a theoretically grounded, empirically validated framework that integrates situational analysis, adaptable methods, and stakeholder-focused communication, providing actionable guidance for curriculum designers, assessment developers, and institutional policymakers. The main conclusion is that economics education reform grounded in situational competence can produce graduates capable of effectively analyzing real-world economic problems and articulating policy recommendations across diverse audiences. Recommendations include adopting modular curricula aligned with the SC-EE framework, implementing professional development programs to cultivate contextual analysis and policy communication, embedding policy-simulation and case-based assessments into core courses, and establishing continuous evaluation mechanisms to monitor competence development and program impact. Suggestions for further research include cross-cultural validation of the framework, longitudinal tracking of graduates’ professional performance, and adaptation of the SC-EE model to interdisciplinary economics-related fields.