Foreign aid efficiency in primary education
Larsson, Marlene / 2007

Earlier studies within foreign aid efficiency are important but have shown ambiguous result. Several different methods have been employed to explain the foreign aid efficiency. Earlier studies have focused on the relationship between foreign aid and growth as well as testing the fungibility of aid, the affect on poverty or the effect on different political regimes. This study has added to the foreign aid efficiency discourse by analyzing foreign aid efficiency in the primary education sector in Tanzania. The study is a balanced pooled data study estimated with fixed effect, the model used in the model used is a logit model with net enrolment ratio as depended variable. The results of the study are significant and show that the foreign aid given to the education sector is efficient in increasing the net school enrolment in Tanzania. This result emphasizes that foreign aid is efficient when analyzing sector programs on the education sector. Extra models are used in this study to broaden the analysis and test the foreign aid effect on variables that can measure the quality of the education. The results show that in general the foreign aid is efficient when measuring the quality of the education.