Effect of education AID on primary enrollment rate by region and income group

Abstract

The purpose of this paper is to studythe effectsof education aid on primary enrolment rate and growth rate of enrolment rate by region and income group. Regression analysis was conducted using aid disbursement (independent variable), net enrolment rate on primary schoolandthe growth rate of primary enrolmentrate (dependent variables), andthe follwoing8 control variables: 1) initial enrolment rate(L.NER); 2) GDP per capita; 3) government expenditure per primary student as a percent of GDP per capita(EDUCEXP); 4) share of children and youths aged 0-14 as a percentage of overall population (YOUNG POP); 5) agriculture of GDP (%) (Agr/GDP); 6) Political rights (FREE); 7) pupil-teacher ratio in primary education (PTR); and 8) government effectiveness (Effectiveness)from the World Bank except for FREE that is from Freedom House. All data arefrom 2012 to 2014. The result is that education aid has an effectonprimary enrolment rate but it is not effective to growth rate of primary school enrolment rate. Also, education aid has an effect on the growth rate of enrolment rate for the low income group only. There are no statistically significant coefficient for other income and all region groups. Also, variables affectingaid effectivenessare also differentbyregionand income group. Therefore, national characteristicsshould be considered when aid is allocated.