Effectiveness of foreign aid in the light of millennium development goal on the education sector: a case study of Pakistan
Aid recipient developing countries have remained stagnant and they are becoming more aid dependent after receiving large amount of aid from developed countries. This reality provokes vigorous debate on the effectiveness of aid. This study analyzes the effectiveness of aid in the education sector of Pakistan during the period 1973-2008.This study focuses on the second Millennium Development goal, which attributes to achieve universal primary education. We estimate econometric model to test the short run and long run relationship between foreign aid and gross primary enrollment in the education sector of Pakistan. For this purpose, Augumented Dickey Fuller test, Johansen Likelihood Ratio test and Vector Error Correction Methods are used. The results show that foreign aid has significantly increased primary school enrollment in Pakistan. The results proved the short run as well as long run relationship between foreign aid and primary school enrollment.
|Date of creation:||01 May 2011|
|Date of revision:|
|Publication status:||Published in INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS 1.3(2011): pp. 377-389|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- E. N. Appiah & W. W. McMahon, 2002. "The Social Outcomes of Education and Feedbacks on Growth in Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 38(4), pages 27-68.
- Jan Pettersson, 2007. "Foreign sectoral aid fungibility, growth and poverty reduction," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(8), pages 1074-1098.
- Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
- Michaelowa, Katharina, 2004. "Aid Effectiveness Reconsidered: Panel Data Evidence for the Education Sector," HWWA Discussion Papers 264, Hamburg Institute of International Economics (HWWA).
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
- Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008.
"Does Aid for Education Educate Children? Evidence from Panel Data,"
World Bank Economic Review,
World Bank Group, vol. 22(2), pages 291-314, April.
- Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2006. "Does Aid for Education Educate Children? Evidence from Panel Data," KOF Working papers 06-146, KOF Swiss Economic Institute, ETH Zurich.
- Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2006. "Does Aid for Education Educate Children? Evidence from Panel Data," Kiel Working Papers 1290, Kiel Institute for the World Economy.
- 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).
- McMahon, Walter W., 1998. "Education and Growth in East Asia," Economics of Education Review, Elsevier, vol. 17(2), pages 159-172, April.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37141. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.