Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 1358-1380 |
| Number of pages | 23 |
| Journal | Journal of International Development |
| Volume | 28 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - Nov 2016 |
Keywords
- education
- foreign aid
- health
- low-income countries
- HETEROGENEITY
- MORTALITY
- PANEL-DATA
- GROWTH
- SECTOR
- FOREIGN-AID
- POVERTY REDUCTION
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In: Journal of International Development, Vol. 28, No. 8, 11.2016, p. 1358-1380.
Research output: Contribution to journal › Article › Academic › peer-review
TY - JOUR
T1 - The Impact of Development Aid on Education and Health
T2 - Survey and New Evidence for Low-income Countries from Dynamic Models
AU - Ziesemer, T.
N1 - data source: World Development Indicators; Hallonsten/Ziesemer: World Development Indicators; Gupta, World Development 2014; PWT 6.3 (Heston et al. 2009), Vallizadeh et al: Blinder (2009a); Employment Projections Program, U.S. Department of Labor, U.S. Bureau of Labor Statistics, Table 1.11 (bls_ep_table_111). Export Date: 8 December 2016 Correspondence Address: Ziesemer, T.; Department of Economics, Maastricht University, Tongersestraat 53, Netherlands; email: T.Ziesemer@maastrichtuniversity.nl References: d'Aiglepierre, R., Wagner, L., (2010) Aid and universal primary education, , CERDI, Etudes et Documents E2010.22,, Clermont-Ferrand; Arndt, C., Jones, S., Tarp, F., (2011) Aid effectiveness, , UNU-WIDER WP 20011/14,, Helsinki; 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? 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Some preliminary evidence from Africa (2005) Economic Systems, 29, pp. 422-432; Birchler, K., Michaelowa, K., (2013) Making aid work for education in developing countries, , WIDER WP 2013/021; Boone, P., Politics and the effectiveness of foreign aid (1996) European Economic Review, 40, pp. 289-329; Bruno, G.S.F., Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models (2005) Economics Letters, 87 (3), pp. 361-366; Burnside, C., Dollar, D., Aid, growth, the incentive regime, and poverty reduction (2000) The World Bank, Structure and Policies, pp. 210-227. , In, Gilbert CL, Vines D, (eds)., Cambridge University Press, Cambridge, UK; Burguet, R., Soto, M., (2012) Measuring the child mortality impact of official aid for fighting infectious diseases, , 2000–2010., Universitat Autònoma de Barcelona. 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Evidence from panel data (2008) World Bank Economic Review, 22, pp. 291-314; Durlauf, S.N., Johnson, P.A., Temple, J.R.W., Growth econometrics (2005) Handbook of Economic Growth, pp. 555-677. , In, Aghion P, Durlauf S, (eds)., North-Holland, Amsterdam; Feeny, S., Quattara, B., The effects of health aid on child health promotion in developing countries: cross-country evidence (2013) Applied Economics, 45, pp. 911-919; Fielding, D., McGillivray, M., Torres, S., (2006) A wider approach to aid effectiveness: correlated impacts on health, wealth, fertility and education, , UNU-WIDER Research Paper 2006/23,, Helsinki; Findley, M., Hawkins, D., Nielson, R., Nielson, D., Wilson, D., (2010) To empower or impoverish? 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Paper for the African Development Bank/United Nations Economic Commission for Africa Conference on Globalization and Economic Development in Africa,, Mimeo, Tunis, November; Hudson, J., Consequences of aid volatility for macroeconomic management and aid effectiveness (2015) World Development, 69, pp. 62-74; Hudson, J., Mosley, P., Aid policies and growth: in search of the Holy Grail (2001) Journal of International Development, 13, pp. 1023-1038; Masud, N., Yontcheva, B., (2005) Does foreign aid reduce poverty? Empirical evidence from nongovernmental and bilateral aid, , IMF Working Paper WP/05/100, Washington; Michaelowa, K., (2004) Aid effectiveness reconsidered – panel data evidence for the education sector, , HWWA Discussion Paper 264,, Hamburg; Mishra, P., Newhouse, D., Does health aid matter? (2009) Journal of Health Economics, 28, pp. 855-872; Mosley, P., Hudson, J., Verschoor, A., Aid, poverty reduction and the ‘new conditionality’ (2004) The Economic Journal, 114, pp. F217-F243; Morrissey, O., Aid and government fiscal behavior: assessing recent evidence (2015) World Development, 69, pp. 98-105; Mukherjee, D., Kizhakethalckal, E.T., Empirics of health-aid, education and infant mortality: a semiparametric study (2013) Applied Economics, 45, pp. 3137-3150; Pickbourn, L., Ndikumana, L., (2013) Impact of sectoral allocation of foreign aid on gender equity and human development, , WIDER Working Paper 2013/066, July; Riddel, A., (2012) The effectiveness of foreign Aid to education, , UNU-WIDER Working Paper 2012/75,, Helsinki; Sarafides, V., Wansbeek, T., (2010) Cross-sectional dependence in panel data analysis, , MPRA Paper 20815; Smith, R.P., Fuertes, A.-M., (2010) Panel time-series, cemmap course April 2010, , London, Downloaded 24 Aug 2011; White, H., Will the new aid agency help promote poverty reduction? 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PY - 2016/11
Y1 - 2016/11
N2 - This paper has four messages. First, a literature review shows that panel data models including lagged dependent variables lead to statistically significant, favourable results for at least one form of aid unless only commitment data are used. Second, in our own analysis, we find that growth rates or levels of aid per capita have statistically significant, favourable effects on growth rates rather than on levels of life expectancy and illiteracy. Third, for the growth rate of illiteracy, we find a strong role of polynomial distributed lags, helping to explain the great diversity of aid results found in the literature. Fourth, in simulations, both effects are small in terms of growth rates in the short run but cumulate over time to non-negligible amounts. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.
AB - This paper has four messages. First, a literature review shows that panel data models including lagged dependent variables lead to statistically significant, favourable results for at least one form of aid unless only commitment data are used. Second, in our own analysis, we find that growth rates or levels of aid per capita have statistically significant, favourable effects on growth rates rather than on levels of life expectancy and illiteracy. Third, for the growth rate of illiteracy, we find a strong role of polynomial distributed lags, helping to explain the great diversity of aid results found in the literature. Fourth, in simulations, both effects are small in terms of growth rates in the short run but cumulate over time to non-negligible amounts. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.
KW - education
KW - foreign aid
KW - health
KW - low-income countries
KW - HETEROGENEITY
KW - MORTALITY
KW - PANEL-DATA
KW - GROWTH
KW - SECTOR
KW - FOREIGN-AID
KW - POVERTY REDUCTION
U2 - 10.1002/jid.3223
DO - 10.1002/jid.3223
M3 - Article
SN - 0954-1748
VL - 28
SP - 1358
EP - 1380
JO - Journal of International Development
JF - Journal of International Development
IS - 8
ER -