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...eover, Monte Carlo analysis suggests that bias due to theslagged dependent variable in a normal fixed effects (FE) regression model is largelysconcentrated on the coefficient of this variable itself (=-=Judson and Owen 1999-=-: 12). Thus ass7slong as we are not interested in the interpretation of the effect of lagged dependent variables(L.NER), this might not be too much of a concern.2sRegression (2) thus presents the resu...

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...tems in the case of India and Pakistan though many of the original institutions may havesbeen eroded by systems of corruption and contribution to public good problems—as in thescase of South India in =-=Wade 1989-=-: 73 suggests). As we have seen earlier, some donors attachsmore importance to water and sanitation sector—let us call them ‘WSS donors’. We cansconjecture that case c is likely in a developing countr...

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...significant direct benefits to the users but also producessignificant positive externalities in terms of improved school attendance and educationalsperformance, and improved productivity for workers (=-=Hutton and Haller 2004-=-; Rijsbermansand Zwane 2012). Given all these benefits, the question is not that donors spent any amountsof aid on Wat-san but what stopped them from spending even more rather than less—givensthat nea...

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...essSource: Authors, using data described in Appendix 2.sThe Suits index is a statistical counterpart to aid concentration curves, which summarizes thesprogressivity or regressivity of a distribution (=-=Suits 1977-=-).3 Unlike the Gini coefficient, ofswhich it is an analogue, the Suits index can vary between -1 and +1. A Suits index of -1scorresponds to the (not necessarily desirable) situation in which a donor g...

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...panese aid is to ‘contribute to the peace and security of the international community, andsthereby help to ensure Japan’s own security and prosperity’ (Japanese Ministry of Foreign Affairs, quoted ins=-=Riddell 2007-=-).s16 The four Nordic countries and the Netherlands are the only countries to have surpassed the 0.7 per cent ofsGNI target (OECD 2012).s17 Figure 10: Comparison of Suits indices by donorsSource: Auth...

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...ucation.sIndeed, education production function estimations based on student surveys in Africa showsthat the relationship between class size and student achievement is generally rather weak (see,se.g. =-=Michaelowa 2001-=-). Such a relationship is even less obvious for repetition rates. Moresconvincingly, Wolf (2007) uses youth literacy rates, but this is not necessarily linked tosimprovements in the education system a...

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...of its aid disbursements between 2009 and 2011, hassremained focused on the poorest countries despite the impact of the War on Terror on bothsaid flows and poverty selectively (Dreher and Fuchs 2011; =-=Fleck and Kilby 2010-=-). Inscontrast, the US aid to the other social sectors is relatively regressive. In both cases, thesimportance of special interest groups and annual legislative votes required on foreign aids(Milner a...

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... number of studies have established a link between preprimary education and the ability to cope well during later years of schooling, a consequencesthat simultaneously tends to reduce drop-out rates (=-=UNESCO 2007-=-: 17). In addition, a soundsuniversity system may be beneficial for primary education through the training of goodsteachers. However, this is a very long-term perspective since at least in many SSA co...

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...riables facilitates the conceptualization of the impact chain and circumventsssome of the thorny issues regarding, notably, the adequate temporal relationship (cf. thesdebate on ‘early impact aid’ by =-=Clemens et al. 2012-=-). While it is certainly interesting to seeswhether aid for education also has an indirect effect on growth, education is an objective insitself, and—especially at the basic level—an important dimensi...

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...ming thatsrelative underreporting is the same across sectors and countries, we thus multiply EDUCAIDsby 10/3 in the first period, and by 10/8 in the second CRS (for details on this approach, seesalso =-=Michaelowa and Weber 2007-=-: 4). This hardly changes any of our results, and EDUCAIDsis significant as before.4sWe conclude that the results of Regression (4) in Table 1 do not reflect a spurious correlationsrelated to improved...

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...tion between bilateral and multilateral aid (Arndt et al. 2011; Breitwieser andsWick 2012; Christensen et al. 2010, 2011, 2012; D’Aiglepierre 2011; D’Aiglepierre andsWagner 2010; Findley et al. 2009; =-=Gyimah-Brempong and Aziedu 2008-=-). Perhaps this fastsdevelopment of the literature is due to the fact that looking at this sectorial analysis isssomehow more rewarding than looking at aid in general. A more direct link between input...

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...education database, supplemented by informationsfrom UNICEF’s Childinfo database. It is estimated that there were approximately 61 millionschildren of primary school age not attending school in 2010 (=-=UNESCO 2012-=-). We focus onsachieving universal primary school education, in line with Goal 2 of the MDGs. In addition,seven though information on net secondary school enrolment rates are available for mostscountr...

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...at-san or WSS) has always been a significant component of aidsfor various reasons. Wat-san improvements contribute directly to saving lives of infants,schildren and pregnant mothers (UNICEF/WHO 2009; =-=Spears 2012-=-; Cheng et al. 2012).sSecond, in many cases they contribute to improving the quality of life especially with regardsto ‘life with dignity’ (as recognized in UN General Assembly resolution 64/292 of 20...

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... or even negative effects (Christensen etsal. 2010; Findley et al. 2009) have been further elaborated upon by (some of) the authors andsnow provide some positive evidence, at least for bilateral aid (=-=Christensen et al. 2011-=-, 2012).sThe availability of DAC aid disbursement data by sector since the early 1990s has furthersincreased the precision of more recent estimations which reinforce the tentatively positivesresults o...

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...ofession, and tosaccept relatively high PTRs in order to be able to enroll more students, (see, e.g. thesbenchmarks of the Education for All—Fast Track Initiative (EFA-FTI) (EFA-FTI Secretariats2006; =-=MINEDAF 2002-=-)). From this perspective, some might argue that donors may havesfocused on quantity to the detriment of quality.sAt the same time, a number of aid activities have been primarily focusing on education...

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...lby 2010). Inscontrast, the US aid to the other social sectors is relatively regressive. In both cases, thesimportance of special interest groups and annual legislative votes required on foreign aids(=-=Milner and Tingley 2010-=-) can help to explain the pattern of disbursements: the health,spopulation, and infrastructure lobbies are all strong in Washington DC. Nonetheless, thesprimary purpose of US foreign assistance is one...

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...on crisis, another innovation, namely Oral RehydrationsTherapy (ORT) was popularized and mortality from cholera decreased from 30 per cent tosless than 1 per cent in a period of 8 weeks (Levine 2007; =-=Fontaine et al. 2007-=-).sOne of the papers in the most recent Global Burden of Disease 2010 (GBD2010) studyspublished in December 2012 noted that the number of deaths attributable to unimprovedswater and sanitation decreas...

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...temperature whichstriggers a bloom of phytoplankton which in turn triggers zooplankton which harbour thespathogenic vibrio cholerae that cause cholera (Colwell et al. 2003; de Magny and Colwells2009; =-=Jutla et al. 2011-=-).sNotwithstanding these difficulties, donors are devoting energies to assess aid to water andssanitation more regularly.s3s3 How much aid is given to water and sanitation sector?sAn assessment of aid...

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...example, strong performers on MDGs such assIndia, Vietnam, Turkey, and China received a significant amount of aid and were amongststop ten recipients of aid in water and sanitation sector in 2009-10 (=-=OECD 2012-=-). That reportsnotes that some countries such as Haiti and Mauritania received little by way of aid for watersand sanitation though they have a large proportion of population without access to improve...

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...ively low.sThis is also consistent with the frequent evidence for developing (as opposed tosindustrialized) countries that educated youth tend to be unemployed more often than theirsuneducated peers (=-=Michaelowa and Waller 2003-=-). Thus while these trainings may be verysvaluable by themselves, they do not seem to positively influence primary enrolment.sIn a final step, we directly examine potential complementarities between i...

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...ost half (49 per cent) of its aid disbursements between 2009 and 2011, hassremained focused on the poorest countries despite the impact of the War on Terror on bothsaid flows and poverty selectively (=-=Dreher and Fuchs 2011-=-; Fleck and Kilby 2010). Inscontrast, the US aid to the other social sectors is relatively regressive. In both cases, thesimportance of special interest groups and annual legislative votes required on...

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...of the improvement may have occurred without any aid. It is difficultsto isolate how much of this increment actually came from aid funded activities.sA previous study based on data from 1990 to 2004 (=-=Anand 2006-=-) suggested that there was noscorrelation between the volume of aid received and performance in terms of whether thesproportion of population with access to water and sanitation improved and if so by ...

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...ypes ofsfiltering devices including capital intensive but small-scale domestic ultra-violet (UV) raystreatment plants or reverse-osmosis plants or even relying entirely on bottled water forsdrinking (=-=Anand 2007-=-). Improving the reliability and trust-worthiness of water utility (orswater service providers) amongst its consumers is essential before they can begin to enjoy thesbenefits of expensive water treatm...

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...eneity,sand a distinction between bilateral and multilateral aid (Arndt et al. 2011; Breitwieser andsWick 2012; Christensen et al. 2010, 2011, 2012; D’Aiglepierre 2011; D’Aiglepierre andsWagner 2010; =-=Findley et al. 2009-=-; Gyimah-Brempong and Aziedu 2008). Perhaps this fastsdevelopment of the literature is due to the fact that looking at this sectorial analysis isssomehow more rewarding than looking at aid in general....

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...Weker 2012). Despite recent initiatives to increase both thescoordination and selectivity of aid, most donors’ aid disbursements are both highlysfragmented and show evidence of small country effects (=-=Easterly 2007-=-; OECD 2012).sGiven this background, this section asks to what extent aid is targeted towards the poorestscountries, and whether the poverty focus of aid differs between overall aid and aid to thessoc...

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...nference on the Financing of Development. Although the doubling of aid tosAfrica proposed by the Gleneagles Summit of 2005 has not materialized, aid volumes havesrisen by more than a half since then (=-=OECD 2012-=-). The share of aid directed to the socialssectors has also risen substantially over time, and accounted for more than a third of total aidsin recent years.sThis paper analyses the extent to which aid...

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...sions of the two largest bilateral donors (the USA and Japan)swhile many European countries favour former colonies and major trading partners in their aidsallocation decisions (Bertelemy et al. 2004; =-=Synder 1993-=-). Multilateral donors, in particularsthe European Union, are also strongly influenced by political and trade considerations (Ridells2007) while the voting systems of the Bretton Woods institutions ar...

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...countries affect aid allocation decisions significantly.7 Thissaccords with the accounts of aid disbursements by diplomats, journalists, internationalsrelations experts, and scholars in other fields (=-=Werker 2012-=-). In general left-leaningsgovernments tend to allocate more funding to development aid than right-leaningsgovernments, although the War on Terror has reversed this trend to some extend (Fleck andsKil...

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...of cholera. The direct connection between health and water and sanitation wassclearly established by physician John Snow in 1854 investigating the cause of cholerasoutbreak in London’s Soho district (=-=Snow 2008-=-). By the end of the nineteenth century thesimportance of clean water supply to fight water-borne diseases especially cholera becamesstandard fare of epidemiology textbooks with the case of Calcutta w...

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... could be picking up some endogenous relationships. In others, it seems to resonate withspublic opinion of citizens in donor countries and their concern that ‘corruption makes itspointless donating’ (=-=TNS 2010-=-). Yet, there is also the danger that such results mightsovershadow a lot of good work that is being done on the ground and taint aid with ‘moralsimperialism’ as new conditionality. There is also a pa...

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...differentiations of the dependent variable, varying methods to deal with potential endogeneity,sand a distinction between bilateral and multilateral aid (Arndt et al. 2011; Breitwieser andsWick 2012; =-=Christensen et al. 2010-=-, 2011, 2012; D’Aiglepierre 2011; D’Aiglepierre andsWagner 2010; Findley et al. 2009; Gyimah-Brempong and Aziedu 2008). Perhaps this fastsdevelopment of the literature is due to the fact that looking ...