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Impact of Foreign Aid in Education on Educational Outcomes

Author

Listed:
  • M. Ali Kemal

    (Pakistan Institute of Development Economics, Islamabad)

  • Anum Jilani

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

The study is an attempt to reveal a link between foreign aid and educational projects in the last one and a half decade. This study used nonlinear model by adding square term of foreign aid to capture the nonlinear association with the primary enrolment, secondary enrolment and higher enrolment. Nevertheless the linear model is also estimated and in the all the three models the results are same that foreign aid in the three sectors does not affect enrolment rate. The study concludes that foreign aid could be effective in increasing primary enrolment but not secondary or higher enrolment.

Suggested Citation

  • M. Ali Kemal & Anum Jilani, 2016. "Impact of Foreign Aid in Education on Educational Outcomes," PIDE-Working Papers 2016:139, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2016:139
    as

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    File URL: https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-139.pdf
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    References listed on IDEAS

    as
    1. Mumtaz Anwar & Katharina Michaelowa, 2006. "The Political Economy of US Aid to Pakistan," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 195-209, May.
    2. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," The World Bank Economic Review, World Bank, vol. 22(2), pages 291-314, April.
    3. Unbreen Qayyum & Adnan Haider, 2012. "Foreign Aid, External Debt and Economic Growth Nexus in Low-Income Countries: The Role of Institutional Quality," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(4), pages 97-116.
    4. Michael A. Clemens & Steven Radelet & Rikhil R. Bhavnani & Samuel Bazzi, 2012. "Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth," Economic Journal, Royal Economic Society, vol. 122(561), pages 590-617, June.
    5. Elizabeth Asiedu & Boaz Nandwa, 2007. "The Impact of Foreign Aid in Education Growth: How Relevant is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?," WIDER Working Paper Series RP2007-60, World Institute for Development Economic Research (UNU-WIDER).
    6. Chaudhry, Mumtaz Anwar & Aman, Sughra, 2010. "Aid effectiveness in education sector of Pakistan," HWWI Research Papers 2-20, Hamburg Institute of International Economics (HWWI).
    7. David Booth, 2011. "Aid, Institutions and Governance: What Have We Learned?," Development Policy Review, Overseas Development Institute, vol. 29, pages 5-26, January.
    8. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    9. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, University Library of Munich, Germany.
    10. Elizabeth Asiedu, 2014. "Does Foreign Aid In Education Promote Economic Growth? Evidence From Sub-Saharan Africa," Journal of African Development, African Finance and Economic Association (AFEA), vol. 16(1), pages 37-59.
    11. Elizabeth Asiedu & Boaz Nandwa, 2007. "On the Impact of Foreign Aid in Education on Growth: How Relevant Is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(4), pages 631-649, December.
    12. Baldacci, Emanuele & Clements, Benedict & Gupta, Sanjeev & Cui, Qiang, 2008. "Social Spending, Human Capital, and Growth in Developing Countries," World Development, Elsevier, vol. 36(8), pages 1317-1341, August.
    13. Naheed Aslam, 1987. "The Impact of Foreign Capital Inflow on Savings and Investment: The Case of Pakmtan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 787-789.
    14. United Nations Educational, Scientific and Cultura [UNESCO], 2015. "Education for All 2000-2015: Achievements and Challenges," Working Papers id:7512, eSocialSciences.
    15. David Fielding & Mark McGillivray & Sebastian Torres, 2006. "A Wider Approach to Aid Effectiveness: Correlated Impacts on Health, Wealth, Fertility and Education," WIDER Working Paper Series RP2006-23, World Institute for Development Economic Research (UNU-WIDER).
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    More about this item

    Keywords

    Aid; Education; Effectiveness; Enrolment;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • F35 - International Economics - - International Finance - - - Foreign Aid

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