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Does Aid for Education Educate Children? Evidence from Panel Data Author info | Abstract | Publisher info | Download info | Related research | Statistics Axel Dreher () (Department of Management, Technology, and Economics, ETH Zurich )
Peter Nunnenkamp () (The Kiel Institute for the World Economy)
Rainer Thiele () (The Kiel Institute for the World Economy)
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This paper empirically analyzes the impact of aid on education for about 100 countries over the period 1970-2005. We estimate a system of equations to test whether and to what extent the impact of sector-specific aid on educational attainment depends on (i) the extent to which aid adds to overall educational expenditure of the recipient government, (ii) the strength of the link between government expenditure and education, (iii) the quality of institutions in the recipient country, and (iv) whether aid encourages institutional reforms. According to our results, aid significantly increases primary school enrolment. This result is robust to the method of estimation, employing instruments to control for the endogeneity of aid, and the measure of institutional quality employed. The degree of institutional quality, however, has no robust impact on this relationship.
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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series Working papers with number
06-146.
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Length: 42 pages
Date of creation: Aug 2006Date of revision:
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Keywords: Aid effectiveness Education Sector-specific aid Other versions of this item:
Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education I22 - Health, Education, and Welfare - - Education - - - Educational Finance
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Jonas Dovern & Peter Nunnenkamp, 2006.
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