Foreign Aid and Education and Health Outcomes: Further Evidence
6 May 2014
IOB, Nile Room - Lange St Annastraat 7 - 2000 Antwerpen
12:30 PM - 2:00 PM
IOB lunch seminar by Dr. George Mavrotas (D.Phil. Oxford), IOB Visiting Professor
The paper uses panel data from a large number of developing countries, two measures of external aid and a Dynamic Panel Data estimator to investigate the effects of foreign aid on human capital formation in developing countries. In particular, the paper examines whether foreign aid targeted to education and health sectors increases primary school completion rates and whether aid to the health sector decreases child mortality rates. A central finding emanating from the paper is that aid has a significantly positive effect on primary school completion rates; similarly, aid to the health sector significantly decreases child mortality rates. It is also notable that the effects are different from the effects of aggregate aid on outcomes in these sectors, thus highlighting the importance of aid heterogeneity issues. Finally the paper finds no evidence of aid fungibility to primary education and health sectors in the sample. The estimates are also robust to different estimation methods employed.
Short bio of Dr. George Mavrotas (D.Phil. Oxford), IOB Visiting Professor
Dr. George Mavrotas is a development economist with more than 25 years of experience in international development working with donor agencies and governments in developing countries on a wide range of development issues. He is a renowned scholar and expert in the overall nexus between macroeconomics and development finance, including the macroeconomics of foreign aid effectiveness and domestic resource mobilization, financial sector development and poverty reduction. Other research interests include primary commodity markets and natural resources, human capital development (with an emphasis on the economics of education & training) as well as international migration and urbanization and development. Current appointments and affiliations include a Senior Fellow at the Foundation for International Development Study and Research (Ferdi, France), an External Research Associate at the Oxford Centre for the Analysis of the Resource Rich Economies (OxCarre) of the Department of Economics, University of Oxford, an Associate Fellow at the Centre of Regional Integration Studies of the United Nations University in Bruges and an Adjunct Professor of Economics in the Faculty of Economics & Business of the University of the South Pacific, Fiji. Previous appointments include Chief Economist of the Global Development Network, Senior Fellow and Project Director at the World Institute for Development Economics Research of the United Nations University and prior to that on the Economics Faculties of the Universities of Oxford and Manchester. He is the author and co-author of more than 120 publications including numerous papers in leading peer-reviewed journals and 10 books. He holds a D.Phil. (PhD) in Economics from Oxford.
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