The importance of education aid for primary, secondary and tertiary educational outcomes.

This study adds to the existing literature by studying the relationship between education aid and educational outcomes in developing countries. Using the most recent and complete data on aid disbursements, aid for education is further disaggregated to aid for primary, - secondary and higher education. The results obtained indicate that aid has a positive effect on primary- and secondary educational outcomes. The effect of aid for higher education on tertiary enrolment rates is not significant and not robust for various specifications. Furthermore, the results suggest that aid for primary education yields the highest returns when it is donated to low-income countries. Aid for higher education achieves the greatest effect when it is donated to lower-middle-income countries. Due to missing data for educational outcomes and a limitation in the years covered by the data panel, the results are only considered as an indication of the possible impact of aid for education.