Does Aid for Education Educate Children? Evidence from Panel Data

Posted: 7 Jul 2008

See all articles by Axel Dreher

Axel Dreher

Heidelberg University

Peter Nunnenkamp

University of Kiel

Rainer Thiele

Kiel Institute for the World Economy

Multiple version iconThere are 2 versions of this paper

Date Written: 2008

Abstract

Most of the aid effectiveness literature has focused on the potential growth effects of aggregate aid, with inconclusive results. Considering that donors have repeatedly stressed the multidimensionality of their objectives, a more disaggregated view on aid effectiveness is warranted. The impact of aid on education is analyzed empirically for almost 100 countries over 1970-2004. The effectiveness of sector-specific aid is assessed within the framework of social production functions. The Millennium Development Goals related to education, particularly the goal of achieving universal primary school enrollment, are considered as outcome variables. The analysis suggests that higher per capita aid for education significantly increases primary school enrollment, while increased domestic government spending on education does not. This result is robust to the method of estimation, the use of instruments to control for the endogeneity of aid, and the set of control variables included in the estimations.

Keywords: F35, O11, H52, I22

Suggested Citation

Dreher, Axel and Nunnenkamp, Peter and Thiele, Rainer, Does Aid for Education Educate Children? Evidence from Panel Data (2008). The World Bank Economic Review, Vol. 22, Issue 2, pp. 291-314, 2008. Available at SSRN: https://ssrn.com/abstract=1156193 or http://dx.doi.org/lhn003

Axel Dreher (Contact Author)

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

HOME PAGE: http://www.axel-dreher.de

Peter Nunnenkamp

University of Kiel ( email )

D-24100 Kiel
Germany

Rainer Thiele

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, D-24100
Germany
+49 431 8814 215 (Phone)
+49 431 8814 500 (Fax)

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