Authors: Simplice A. Asongu; Joseph I. Uduji; Elda N. Okolo-Obasi
Addresses: African Governance and Development Institute, P.O. Box 8413, Yaoundé, Cameroon ' Department of Marketing, Faculty of Business Administration, Enugu Campus, University of Nigeria, Nsukka, Nigeria ' Institute for Development Studies, Enugu Campus, University of Nigeria, Nsukka, Nigeria
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.
Keywords: primary education; secondary education; tertiary education; lifelong learning; knowledge economy; foreign aid; volatility; economic development; generalised method of moments; principal component analysis; Africa.
International Journal of Education Economics and Development, 2020 Vol.11 No.4, pp.370 - 406
Received: 11 Feb 2019
Accepted: 30 Nov 2019
Published online: 17 Jul 2020 *