Volatility of Education Aid and Female Education

Positive contributions of females to economic growth cannot be denied and they can contribute more effectively to economic development if they get a better education. Thus, it is essential to explore the different ways of enhancing female education and reducing the gender gap. Such actions can be even more crucial in low-income countries where the need for higher economic growth is more pressing. The important point for these countries is that the scope and quality of education are highly dependent on foreign aid on education. This paper empirically investigates the link between schooling of female students and the volatility of foreign aid on education to better understand the impact of aid on female education and the ways of improving it. The results show that the share of female students increases with declining volatility of foreign aid in low-income countries. Another interesting finding is that the volatility of education aid also affects total students, but this effect is relatively weak when compared to female students only. The dataset covers the years 2002–2016 and 27 low-income countries from Africa and Asia.