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Foreign aid volatility and lifelong learning: demand-side empirics to a textual literature

Author

Listed:
  • Simplice Asongu

    () (Yaoundé/Cameroun)

  • Jacinta C. Nwachukwu

    () (Huddersfield, HD1 3DH, UK)

Abstract

Purpose- This paper has put a demand-side empirical structure to the hypothesis that foreign aid volatility adversely affects choices to lifelong learning in recipient countries Design/methodology/approach- Lifelong learning is measured as the combined knowledge acquired during primary, secondary and tertiary educational enrolments. Three types of aggregate foreign aid volatilities are computed in a twofold manner: baseline standard deviations and standard errors (standard deviations of residuals after first-order autoregressive processes). An endogeneity robust dynamic system GMM empirical strategy is employed. Findings- The findings broadly show that foreign aid volatility does not adversely affect the demand-side choices of lifelong learning in Africa. Practical implications- As a policy implication, when faced with aid uncertainty, the demand for education would increase. This may be explained by the need for more self-reliance in order to mitigate income risks or/and the use of education as means of copping with uncertainty. Moreover, the findings indirectly confirm a stream of the literature sustaining that when faced with uncertainty in external financial flows, countries may recourse to promoting human resource development through lifelong learning and knowledge economy as a competitive advantage. This may also explain why countries which have acknowledged scarcity in external financial flows from natural resources have done relatively better compared to their natural resource-rich counterparts. Originality/value- This paper has provided demand-side empirics to a hypothesis that could substantial influence policy making.

Suggested Citation

  • Simplice Asongu & Jacinta C. Nwachukwu, 2015. "Foreign aid volatility and lifelong learning: demand-side empirics to a textual literature," Working Papers of the African Governance and Development Institute. 15/016, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:15/016
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    File Function: Revised version, 2015
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    References listed on IDEAS

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    Cited by:

    1. Asongu, Simplice & Efobi, Uchenna & Beecroft, Ibukun, 2015. "FDI, Aid, Terrorism: Conditional Threshold Evidence from Developing Countries," EconStor Preprints 114569, ZBW - Leibniz Information Centre for Economics.
    2. Simplice A. Asongu, 2017. "The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes, and Implications," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 596-637, June.

    More about this item

    Keywords

    Lifelong learning; Foreign aid; Development; Africa;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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