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Does Foreign Aid In Education Promote Economic Growth? Evidence From Sub-Saharan Africa

Author

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  • Elizabeth Asiedu

    (Department of Economics, The University of Kansas)

Abstract

This paper examines whether foreign aid in education has a significant effect on growth in Sub-Saharan Africa. Our analysis covers 38 countries over the period 1990-2004 and we control for initial per capita income, inflation, investment, government consumption, openness to trade and institutional quality. We find that (i) aid in primary education has a positive and significant effect on growth; (ii) aid in post-primary education has an adverse effect or at best no significant impact on growth; and (iii) growth increases as aid in primary education as a share of total education aid rises.

Suggested Citation

  • Elizabeth Asiedu, 2014. "Does Foreign Aid In Education Promote Economic Growth? Evidence From Sub-Saharan Africa," Journal of African Development, African Finance and Economic Association (AFEA), vol. 16(1), pages 37-59.
  • Handle: RePEc:afe:journl:v:16:y:2014:i:1:p:37-59
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    More about this item

    Keywords

    Africa; Education; Foreign Aid; Growth;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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