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Foreign aid volatility and lifelong learning

Author

Listed:
  • Asongu, Simplice
  • Uduji, Joseph
  • Okolo-Obasi, Elda
Abstract
This paper has put a demand-side empirical structure to the hypothesis that foreign aid volatility adversely affects choices to lifelong learning in recipient countries. Lifelong learning is measured as the combined knowledge acquired during primary, secondary and tertiary educational enrolments. Three types of aggregate foreign aid volatilities are computed in a twofold manner: baseline standard deviations and standard errors (standard deviations of residuals after first-order autoregressive processes). An endogeneity robust system GMM empirical strategy is employed. The findings broadly show that foreign aid volatility does not adversely affect the demand-side choices of lifelong learning in Africa. As a policy implication, when faced with aid uncertainty, the demand for education would increase. This may be explained by the need for more self-reliance in order to mitigate income risks or/and the use of education as means of coping with uncertainty. More policy implications are discussed.

Suggested Citation

  • Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2019. "Foreign aid volatility and lifelong learning," MPRA Paper 102032, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:102032
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    6. Uduji, Joseph & Okolo-Obasi, Elda & Asongu, Simplice, 2021. "Does Corporate Social Responsibility Initiative Dissuade the Increasing Electoral Violence in sub-Saharan Africa? Evidence from Nigeria’s Oil Producing Region," MPRA Paper 110756, University Library of Munich, Germany.

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    More about this item

    Keywords

    Lifelong learning; Foreign aid; Development; Africa;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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