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On the Impact of Foreign Aid in Education on Growth: How Relevant Is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?

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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 analyzing the effect of aid on growth.

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Author information

Authors and Affiliations

  1. Department of Economics, University of Kansas, 66045, Lawrence, KS, USA

    Elizabeth Asiedu

  2. Yale University, New Haven, CT, USA

    Boaz Nandwa

Authors
  1. Elizabeth Asiedu
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  2. Boaz Nandwa
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Corresponding author

Correspondence to Elizabeth Asiedu.

Additional information

JEL no.

F34, F35, I20, O19

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Asiedu, E., Nandwa, B. On the Impact of Foreign Aid in Education on Growth: How Relevant Is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?. Rev World Econ 143, 631–649 (2007). https://doi.org/10.1007/s10290-007-0125-9

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  • DOI: https://doi.org/10.1007/s10290-007-0125-9

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