Does aid for education educate children?: Evidence from Panel data

Most of the aid effectiveness literature has focused on the potential growth effects of aggregate aid, with inconclusive results. Considering that donors have repeatedly stressed the multidimensionality of their objectives, a more disaggregated view on aid effectiveness is warranted. The impact of a...

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Bibliographic Details
Published in:The World Bank economic review 2008-01, Vol.22 (2), p.291-314
Main Authors: Dreher, Axel, Nunnenkamp, Peter, Thiele, Rainer
Format: Article
Language:English
Subjects:
Adult literacy
Aid
Aid Allocation, MDGs, Development Aid
aid for education
Bildungspolitik
Bildungsverhalten
Child welfare
children
Developed countries
Economic impact analysis
Economic theory
Economics of education
Education
Education policy
education sector
Educational attainment
Educational research
Enrollment rate
Enrollments
Entwicklungshilfe
Estimation
Expenditures
F35
fees
Foreign aid
gender disparities
Global economy
Government expenditures
Government spending
Gross domestic product
Growth rates
H52
I22
Millennium Development Goals
O11
Panel data
Per capita
Poverty
Primary education
primary school
primary school enrollment
Primary schools
Production functions
Regression analysis
School attendance
School enrollment
School finance
schooling
Schätzung
Studies
universal primary education
Variables
Welt
Wirkungsanalyse
Wirtschaftspolitik
Wirtschaftspolitische Wirkungsanalyse
World Bank
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Summary:Most of the aid effectiveness literature has focused on the potential growth effects of aggregate aid, with inconclusive results. Considering that donors have repeatedly stressed the multidimensionality of their objectives, a more disaggregated view on aid effectiveness is warranted. The impact of aid on education is analyzed empirically for almost 100 countries over 1970–2004. The effectiveness of sector-specific aid is assessed within the framework of social production functions. The Millennium Development Goals related to education, particularly the goal of achieving universal primary school enrollment, are considered as outcome variables. The analysis suggests that higher per capita aid for education significantly increases primary school enrollment, while increased domestic government spending on education does not. This result is robust to the method of estimation, the use of instruments to control for the endogeneity of aid, and the set of control variables included in the estimations.
ISSN:0258-6770
1564-698X
1564-698X
DOI:10.1093/wber/lhn003