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The impact of development aid on education and health: Survey and new evidence from dynamic models


  • Ziesemer, Thomas

    () (UNU-MERIT/MGSoG, and School of Business and Economics, Maastricht University)


We investigate the impact of aggregate aid, earmarked aid, committed or disbursed, on social indicators in health and education. A literature review shows that for earmarked aid use of commitment data mostly leads to insignificant results; use of disbursement data mostly leads to significantly favourable results; panel data models including lagged dependent variables lead to significantly favourable results for at least one form of aid unless only commitment data are used. In our own analysis of effects of aggregate aid per capita on life expectancy and literacy we find from detailed analysis of lag structures that the data for literacy and life expectancy in dynamic panel data models should be taken in the form of growth rates. Growth rates of aid per capita are shown to have significantly favourable effects on the growth rates life expectancy. Growth rates or levels of aid per capita may reduce growth rates of illiteracy in system GMM estimates.

Suggested Citation

  • Ziesemer, Thomas, 2012. "The impact of development aid on education and health: Survey and new evidence from dynamic models," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2012057

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    References listed on IDEAS

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    Cited by:

    1. Thomas H.W. ZIESEMER, 2012. "Worker remittances and government behaviour in the receiving countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 37-59, December.
    2. 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.
    3. 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.

    More about this item


    Development Aid; Education; Health; Dynamic Panel Data Model;

    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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