Foreign Aid Effectiveness in the Education Sector: A Dynamic Panel Analysis

Abstract

In the realm of development economics, foreign aid and economic development are interconnected concepts, both in theory and practice. Education, a fundamental human right, plays a pivotal role in shaping human capital and driving economic progress. With this in mind, the primary objective of this study is to explore the relationships between education aid and the various levels of schooling, namely primary, secondary, and tertiary, in developing countries. The effect of the primary, secondary, and tertiary level education aid of fifty developing countries with 19 years of panel data was investigated to determine the relationship with Primary Completion Rate, Secondary School Net Enrolment Rate, and Tertiary Gross Enrolment Rate, respectively. The study used the system GMM (One-step GMM and Two-step GMM). The findings suggest that a statistically significant relationship exists between education aid and various levels of education, and education aid effectively enhances the education outcome in developing countries. The findings also underline the importance of establishing sound economic foundations, addressing corruption, maintaining optimal Pupil-Teacher Ratio, and emphasizing female teachers. These factors collectively contribute to fostering an enabling environment for enhancing education outcomes in developing countries.

Health Aid and Human Well-being: Exploring the Role of Donor Support in Developing Countries (Evidence from Fifty Developing Countries’ Dynamic Panel Data Analysis)

“…It serves three fundamental objectives: generating prosperity, sharing prosperity, and sustaining prosperity. Thus, it is instrumental in fostering the concept of "the art of living together" in the 21st century (Lekhak, 2023). Another side, previous studies, such as those conducted by Burnside & Dollar (1998), Wolf (2007), Fielding et al (2006 and2008), Mishra & Newhouse (2009), Bendavid & Bhattacharya (2014), Arndt et al (2015), Yogo & Mallaye (2015), Ziesemer (2016) and others, have highlighted a positive relationship between health aid and improved health outcomes in developing countries, suggesting that health aid contributes to enhancing the health sector.…”