Estimating the association between foreign aid for education and education outcomes

evidence from panel data, 1970-2013

LIM, Sara

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Most aid effectiveness studies have revolved around the relationship between aid and growth. Considering the returns of education to economic growth and quality of life, this research adopts a sector-specific approach to investigate the association between aid for education and educational attainment. The association between aid for education and education outcomes is studied empirically for 169 aid-recipient countries from 1970 to 2013. The findings suggest that higher per capita education aid has a statistically significant association with the increased enrollment rates and completion rate. In contrast, aid for all sectors and a sector other than education as a placebo does not show such association. An additional $1,000 of per capita education aid is significantly associated with a 1% increase in enrollment rates and a 2% increase in the number of students reaching the final grade and the number of primary education graduates. The results are robust to different estimation methods, fixed-effects, and the set of control variables included in the regression estimations.

Rhee, Inbok
KDI School, Master of Development Policy
Issue Date
KDI School
Thesis(Master) -- KDI School: Master of Development Policy, 2021
Economic assistance--Developing countries; Education--Developing countries
1. Introduction

2. Literature Review

3. Data and Descriptive

4. Methodology

5. Results

6. Discussion and Conclusion

7. Reference

8. Appendix
41 p
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