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Aid and Universal Primary Education

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  • d’Aiglepierre, Rohen
  • Wagner, Laurent

Abstract

Universal Primary Education is one of the main objectives of development aid. However, very little empirical evidence of its effectiveness actually exists. Until recently, the quality of the available data has not been good enough to obtain robust results about the relationship between international aid and educational achievement. In this paper the most recent disaggregated reliable data available is used to study the relationship between aid for education and educational achievement. The focus here is on the educational variables for coverage, gender equality, and process. The cultural proximity between donors and recipient countries is used as an instrument to tackle endogeneity. Our results are very robust and indicate that aid for primary education has a strong positive effect on primary school enrolment, and gender equality. A reduction in repetition rate is also found, but no effect on the pupil/teacher ratio nor the percentage of trained teachers is observed.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 37 (2013)
Issue (Month): C ()
Pages: 95-112

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Handle: RePEc:eee:ecoedu:v:37:y:2013:i:c:p:95-112

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: Aid effectiveness; Sector-specific aid; Primary education;

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References

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  1. Angus Deaton, 2010. "Instruments, randomization, and learning about development," Working Papers 1224, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  2. Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950–2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
  3. Michael A. Clemens & Steven Radelet & Rikhil R. Bhavnani & Samuel Bazzi, 2012. "Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 122(561), pages 590-617, 06.
  4. Patrick GUILLAUMONT & Lisa CHAUVET, 2007. "Aid, Volatility and Growth Again When Aid Volatility Matters and When it Does Not," Working Papers 200707, CERDI.
  5. Maurice J.G. Bun & Frank Windmeijer, 2009. "The Weak Instrument Problem of the System GMM Estimator in Dynamic Panel Data Models," Tinbergen Institute Discussion Papers 09-086/4, Tinbergen Institute.
  6. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA.
  7. Amparo Castelló-Climent & Ana Hidalgo-Cabrillana, 2011. "The Role of Educational Quality and Quantity in the Process of Economic Development," CEP Discussion Papers dp1087, Centre for Economic Performance, LSE.
  8. Dreher, Axel & Nunnenkamp, Peter & Thiele, Rainer, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," Open Access Publications from Kiel Institute for the World Economy 28827, Kiel Institute for the World Economy (IfW).
  9. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
  10. N. Van De Sijpe, 2010. "Is foreign aid fungible? Evidence from the education and health sectors," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 10/688, Ghent University, Faculty of Economics and Business Administration.
  11. Philipp Harms & Matthias Lutz, 2006. "Aid, Governance and Private Foreign Investment: Some Puzzling Findings for the 1990s," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 116(513), pages 773-790, 07.
  12. Paul Collier & Anke Hoeffler, 2007. "Unintended Consequences: Does Aid Promote Arms Races?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 1-27, 02.
  13. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
  14. Mariana Vijil & Laurent Wagner, 2012. "Does Aid for Trade Enhance Export Performance? Investigating the Infrastructure Channel," The World Economy, Wiley Blackwell, vol. 35(7), pages 838-868, 07.
  15. Claudia R. Williamson, 2008. "Foreign Aid and Human Development: The Impact of Foreign Aid to the Health Sector," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 188-207, July.
  16. Wolf, Susanna, 2007. "Does Aid Improve Public Service Delivery?," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  17. Susanna Wolf, 2007. "Does Aid Improve Public Service Delivery?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(4), pages 650-672, December.
  18. Tavares, Jose, 2003. "Does foreign aid corrupt?," Economics Letters, Elsevier, vol. 79(1), pages 99-106, April.
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Citations

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Cited by:
  1. Julian Donaubauer & Birgit Meyer & Peter Nunnenkamp, 2014. "Aid, Infrastructure, and FDI: Assessing the Transmission Channel with a New Index of Infrastructure," Kiel Working Papers 1954, Kiel Institute for the World Economy.
  2. Julian Donaubauer & Dierk Herzer & Peter Nunnenkamp, 2012. "Does Aid for Education Attract Foreign Investors? An Empirical Analysis for Latin America," Kiel Working Papers 1806, Kiel Institute for the World Economy.
  3. Douzounet Mallaye & Yogo Thierry Urbain, 2013. "Foreign aid and mobilization of growth factors in sub-Saharan Africa," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Birchler, Kassandra & Michaelowa, Katharina, 2013. "Making aid work for education in developing countries: An analysis of aid effectiveness for primary education coverage and quality," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Ziesemer, Thomas, 2012. "The impact of development aid on education and health: Survey and new evidence from dynamic models," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Kleemann, Linda & Nunnenkamp, Peter & Thiele, Rainer, 2014. "Gender inequality, female leadership, and aid allocation: A panel analysis of aid for education," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Patrick GUILLAUMONT & Laurent WAGNER, 2014. "Aid effectiveness for poverty reduction: lessons from cross-country analyses, with a special focus on vulnerable countries," Working Papers P96, FERDI.

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