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The Impact of Development Aid on Education and Health: Survey and New Evidence for Low‐income Countries from Dynamic Models

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  • Thomas Ziesemer

Abstract

This paper has four messages. First, a literature review shows that panel data models including lagged dependent variables lead to statistically significant, favourable results for at least one form of aid unless only commitment data are used. Second, in our own analysis, we find that growth rates or levels of aid per capita have statistically significant, favourable effects on growth rates rather than on levels of life expectancy and illiteracy. Third, for the growth rate of illiteracy, we find a strong role of polynomial distributed lags, helping to explain the great diversity of aid results found in the literature. Fourth, in simulations, both effects are small in terms of growth rates in the short run but cumulate over time to non‐negligible amounts. Copyright © 2016 John Wiley & Sons, Ltd.

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  • Thomas Ziesemer, 2016. "The Impact of Development Aid on Education and Health: Survey and New Evidence for Low‐income Countries from Dynamic Models," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(8), pages 1358-1380, November.
    • Handle: RePEc:wly:jintdv:v:28:y:2016:i:8:p:1358-1380
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    2. Verga Matos, Pedro & Romão, Mário & Miranda Sarmento, Joaquim & Abaladas, Alexandre, 2019. "The adoption of project management methodologies and tools by NGDOs: A mixed methods perspective," Journal of Business Research, Elsevier, vol. 101(C), pages 651-659.
    3. Bindeswar Prasad LEKHAK, 2023. "Health Aid and Human Well-being: Exploring the Role of Donor Support in Developing Countries (Evidence from Fifty Developing Countries’ Dynamic Panel Data Analysis)," Global Journal of Health Science, Canadian Center of Science and Education, vol. 15(10), pages 33-72, October.
    4. Dierk Herzer, 2019. "The long-run effect of aid on health: evidence from panel cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 51(12), pages 1319-1338, March.
    5. Ssozi, John & Amlani, Shirin, 2015. "The Effectiveness of Health Expenditure on the Proximate and Ultimate Goals of Healthcare in Sub-Saharan Africa," World Development, Elsevier, vol. 76(C), pages 165-179.
    6. Aysıt Tansel & Deniz Karaoğlan, 2019. "The Effect of Education on Health Behaviors and Obesity in Turkey: Instrumental Variable Estimates from a Developing Country," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1416-1448, December.
    7. Urbain Thierry Yogo & Douzounet Mallaye, 2015. "Health Aid and Health Improvement in Sub‐Saharan Africa: Accounting for the Heterogeneity Between Stable States and Post‐Conflict States," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(7), pages 1178-1196, October.

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    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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