Foreign Aid Volatility and Lifelong Learning

International Journal of Education Economics and Development, 11(4), pp. 370-406 (2020).

37 Pages Posted: 17 Dec 2019 Last revised: 13 Jul 2020

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Joseph I. Uduji

University of Nigeria Enugu Campus

Elda N. Okolo-Obasi

Development Strategy Centre Nigeria

Date Written: November 30, 2019

Abstract

This paper has put a demand-side empirical structure to the hypothesis that foreign aid volatility adversely affects choices to lifelong learning in recipient countries. Lifelong learning is measured as the combined knowledge acquired during primary, secondary and tertiary educational enrolments. Three types of aggregate foreign aid volatilities are computed in a twofold manner: baseline standard deviations and standard errors (standard deviations of residuals after first-order autoregressive processes). An endogeneity robust system GMM empirical strategy is employed. The findings broadly show that foreign aid volatility does not adversely affect the demand-side choices of lifelong learning in Africa. As a policy implication, when faced with aid uncertainty, the demand for education would increase. This may be explained by the need for more self-reliance in order to mitigate income risks or/and the use of education as means of coping with uncertainty. More policy implications are discussed.

Keywords: Lifelong learning; Foreign aid; Development; Africa

JEL Classification: I20; I28; F35; O55; P16

Suggested Citation

Asongu, Simplice and Uduji, Joseph I. and Okolo-Obasi, Elda N., Foreign Aid Volatility and Lifelong Learning (November 30, 2019). International Journal of Education Economics and Development, 11(4), pp. 370-406 (2020)., Available at SSRN: https://ssrn.com/abstract=3496016 or http://dx.doi.org/10.2139/ssrn.3496016

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Joseph I. Uduji

University of Nigeria Enugu Campus ( email )

Department of Accountancy
Box 15540, Enugu
Enugu, NC Enugu 234
Nigeria

Elda N. Okolo-Obasi

Development Strategy Centre Nigeria ( email )

84Nza Street Independence Layout Enugu
Enugu, 400001
Nigeria
08063631111 (Phone)
400001 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
82
PlumX Metrics