Does Foreign Aid In Education Promote Economic Growth? Evidence From Sub-Saharan Africa

Elizabeth Asiedu

Journal of African Development, 2014, vol. 16, issue 1, 37-59

Abstract: This paper examines whether foreign aid in education has a significant effect on growth in Sub-Saharan Africa. Our analysis covers 38 countries over the period 1990-2004 and we control for initial per capita income, inflation, investment, government consumption, openness to trade and institutional quality. We find that (i) aid in primary education has a positive and significant effect on growth; (ii) aid in post-primary education has an adverse effect or at best no significant impact on growth; and (iii) growth increases as aid in primary education as a share of total education aid rises.

Keywords: Africa; Education; Foreign Aid; Growth (search for similar items in EconPapers)
JEL-codes: F35 I25 O55 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (280)

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Persistent link: https://EconPapers.repec.org/RePEc:afe:journl:v:16:y:2014:i:1:p:37-59

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