The Impact of Foreign Aid in Education Growth: How Relevant is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?

Elizabeth Asiedu and Boaz Nandwa

No RP2007-60, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines whether foreign aid in education has a significant effect on growth. We take into consideration the heterogeneous nature of aid as well as the heterogeneity of aid recipients—we disaggregate the aid data into primary, secondary and higher education, and run separate regressions for low-income and middle-income countries. We find that the effect of aid varies by income as well as by the type of aid. Thus our results underscore the importance of the heterogeneity of aid flows as well as the heterogeneity of recipient countries when analysing the effect of aid on growth.

Keywords: Economic assistance and foreign aid; Economic development; Education; Regression analysis (search for similar items in EconPapers)
Date: 2007
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