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Assessing the impact of official development assistance on primary school performance in Côte d'Ivoire: An econometric analysis

N'Zue, Felix Fofana

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N'Zue, Felix Fofana Article Assessing the impact of official development assistance on primary school performance in Côte d'Ivoire: An econometric analysis International Journal of Management, Economics and Social Sciences (IJMESS) Provided in Cooperation with: International Journal of Management, Economics and Social Sciences (IJMESS) Suggested Citation: N'Zue, Felix Fofana (2025) : Assessing the impact of official development assistance on primary school performance in Côte d'Ivoire: An econometric analysis, International Journal of Management, Economics and Social Sciences (IJMESS), ISSN 2304-1366, IJMESS International Publishers, Jersey City, NJ, Vol. 14, Iss. 1/2, pp. 1-22, https://doi.org/10.32327/IJMESS/14.1-2.2025.1 This Version is available at: https://hdl.handle.net/10419/314799 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc/4.0/ 1 International Journal of Management, Economics and Social Sciences 2025, Vol. 14(1-2), pp. 1 – 22. ISSN 2304 – 1366 https://www.ijmess.com Assessing the Impact of Official Development Assistance on Primary School Performance in Côte d’Ivoire: An Econometric Analysis *Felix Fofana N’Zué Dept. of Economics, Université Felix Houphouët Boigny, Abidjan, Côte d’Ivoire Dept. of Economics, Université NAYEBA International de Dabou, Dabou. Côte d’Ivoire Despite the benefits of education, the learning crisis in the developing world has led the World bank to characterize it as learning poverty. Education is yet to be declared a political priority in most developing countries. Official Development Assistance (ODA), which is a mechanism for financial support from governments and their agencies to developing countries and territories, for primary education could improve education quality. This study investigates the relationship between ODA to primary education, political stability, teacher-pupil ratio, government education expenditure, and primary school performance in Côte d’Ivoire. The study uses data from the World Development Indicators and World Governance Indicators databases for the years 2002-2021. The time series characteristics of the data were ascertained and the long-run dynamics among the variables were investigated. The findings suggest that ODA has a significant negative long-run impact on primary school performance. Teacherpupil ratio and changes in political stability also have a negative impact. Government education expenditure has an insignificant impact. However, in the short-run, teacher-pupil ratio and Government education expenditure have negative and significant impact on primary school performance. The study highlights the need for efficient aid allocation, optimal teacher deployment, and stable policy environments to enhance primary education performance. Keywords: Official development assistance, primary education, Côte d’Ivoire, ARDL model, education outcomes JEL: O11, O15, I22 The learning crisis in developing countries has reached critical levels, with 53% of children unable to read a simple text by age 10 (World Bank, 2022a). Despite political rhetoric, education remains underprioritized, and resource limitations plague primary education systems. ODA is often sought to supplement budget allocations, but its impact on education quality remains unclear (Niyonkuru, 2016). Education quality falls under the theory of the Education production function which posits that several factors (inputs) affect education performance (output) (Babcock and Betts, 2009; Coleman, 1966; Hanushek, 1986). Existing literature on the education production function has theoretical and practical gaps. Indeed, education outputs (quality) for instance could take on different meaning or definition. Theory does not suggest which definition should be used. However, to assess more fully progress in primary education, it is most useful to examine what proportion of children complete primary school (Glewwe and Muralidharan, 2016a). Thus, education quality goes beyond the simple idea of enrolment DOI:10.32327/IJMESS . 1 4 . 1 - 2 .202 5 . 1 Manuscript received August 7, 2024; revised December 30, 2024 ; accepted January 5, 2025. © The Author(s); CC BY-NC; Licensee IJMESS Publisher: UCHPRO & National D.B.A Society, USA *Corresponding author: [email protected] International Journal of Management, Economics and Social Sciences 2 rate to investigate the rate of completion. While enrolment rates indicate the number of children who are attending school, completion rates provide to some extinct a more accurate picture of the effectiveness of the education system (UNESCO, 2022). When addressing theoretical issues in education quality, countries or region peculiarities are often overlooked. Different countries could have different education outputs with similar inputs. This underscores the need for caution in generalizing findings on the quality of education. Glewwe and Muralidharan (2016b) emphasize teacher quality, conditional cash transfers, and school infrastructure as critical factors to school performance. In addition, Hanushek and Woessmann (2015) highlight education quality, cognitive skills, and institutional frameworks as drivers of economic growth. The works of these scholars inform our study by emphasizing the significance of understanding education production functions and the potential benefits and impact of ODA in improving primary education through the provision of funding for teacher training, and educational materials among other things. Therefore, this study addresses these gaps by investigating the short and long-term dynamics of ODA’s impact on primary school performance in Côte d'Ivoire. Thus, we seek answers to the following questions: 1. Does ODA allocated to primary education significantly impact changes in primary school performance in Côte d'Ivoire? 2. Are there shortand long-term dynamics in the relationship between ODA and changes in primary school performance? 3. Does changes in political stability influence changes in primary school performance in Côte d'Ivoire? The next section presents the stylized facts on primary education in Côte d’Ivoire and ODA together with completion rate and a set of control variables. It is followed by a review of selected literature. The methods of analysis and data are examined in the methodology section. Remaining sections focus on the empirical findings, discussion of the results, policy implications, limitations and future research directions. Stylized Facts In Côte d’Ivoire, efforts are made to lift the rate of primary school achievement. Data gathered from international sources (World Bank, 2022b) showed that after falling to its lowest level in 2006, it has been on an upward sloping trend. It dropped from 72% in 2002 to 43.7 in 2006 representing 39.3% fall in a four-year period. It should be indicated that this period corresponded to the beginning of the social turmoil that the country experienced. Indeed, in September 2002, there was a failed military coup that N’Zué 3 mutated into a rebellion (in the South) dividing the country into two separate zones. One under the control of the official government where there was a continuous functioning of the public administration and the other (in the North) under the control of the rebel forces. Thus, the school system was disrupted in the northern part of the country and could not be accounted for in the official education data. Source: World Development Indicators World Bank 2022 Figure 1. Trend of Primary School Achievement Rate and ODA to the Primary Education Sector in Cote d’Ivoire from 2002 to 2021 From 2006 going forward, we observed that school completion rate (TAP) had an almost smooth upward sloping trend. This is thanks to the peaceful resolution of the conflict and the reunification of the country. Unlike the TAP variable, ODA to primary education was mostly downward sloping with some spikes in the years 2007, 2010, 2016-2017. When we compare the TAP variable and per capita Gross Domestic Product (GDP), it is observed that except for the years 2002 to 2006 (Figure 2) where a sharp drop of the TAP variable was registered, the two variables had an upward sloping trend. Source: World Development Indicators World Bank 2022 Figure 2. Trend of Primary School Achievement Rate and GDP per Capita in Cote d’Ivoire from 2002 to 2021 The visual graphical analysis showed that these two variables could be moving together. But this needs to be confirmed empirically. We then compared the TAP variable against Government Education International Journal of Management, Economics and Social Sciences 4 Expenditures variable (Figure 3). It could be observed that Government education expenditures dropped in 2003 possibly due to the aftermath of the failed military coup that mutated in rebellion and then partitioned the country into North and South. Going forward, the trend of Government education expenditures was upward sloping although not smooth. Indeed, in 2011 another decline was observed. This could also be attributed to the post electoral crisis in the country that led to a civil war. It is therefore evident for Government education expenditures to fall. Another fall in Government education expenditures could be observed from 2019 to 2021. This fall could be attributed to the Covid-19 pandemic where the government had to redirect resources to address the more pressing health concerns. Source: World Development Indicators World Bank 2022 Figure 3. Trend of Primary School Achievement Rate and Government Education Expenditures in Cote d’Ivoire from 2002 to 2021 Figure 4 puts the trend of ODA to the primary education and government education expenditures side by side. We observe no systematic correlation between the two. However, it appears that in some instances where ODA is on the decline, there was an increase of Government education expenditures. Source: World Development Indicators World Bank 2022 Figure 4. Trend of ODA to the Primary Education Sector and Government Education Expenditures in Cote d’Ivoire from 2002 to 2021 N’Zué 5 This was the case in 2006, 2008-2009, and 2011-2015. With the sharp increase in ODA in 2016 and 2017, a decrease in the Government education expenditures was observed in 2017 and 2018. Unfortunately, the reduction in 2018 coincided with a sharp drop in ODA. Going forward after 2018 ODA and Government education expenditures had similar trend. LITERATURE REVIEW Theoretical Underpinnings This study anchors itself in the education production function theory, originating from the economic theory of production functions. This framework models the transformation of inputs into educational outputs, such as student achievement (Glewwe and Muralidharan, 2016b). They specified the education production output as a function of years of schooling, school and teacher characteristics, child characteristics, household characteristics and educational inputs (daily attendance and school supplies among others). Recent advancements in this theory highlight the complexity in capturing all the factors in the education production function. Building on Becker’s (1964) human capital theory, researchers have refined the concept of education production functions. Indeed, Becker’s work introduced the rate of return on education, comparing benefits to costs (Becker, 2013). Subsequent studies expanded on this foundation. Coleman’s (1966) seminal work, “Equality of Educational Opportunity,” examined the relationship between school inputs and student outcomes in the United States. Although not explicitly termed “education production function,” Coleman’s research guided future studies (e.g., Glewwe and Muralidharan, 2016b; Hanushek, 1986). Hanushek’s (1986, 2013) contributions emphasized the significance of teacher quality, school resources and institutional factors in determining student performance. His findings challenged the assumption that increased spending guarantees improved educational outcomes (Hanushek and Woessmann, 2015). In addition, other theoretical developments highlight contextual influences whereby institutional frameworks, governance and policy environments shape education production functions (North, 2013; Sen, 1993); Teacher’s quality significantly impact student outcomes (Hanushek and Rivkin, 2012; Rockoff and Speroni, 2011); family and socioeconomic factors influence educational attainment (Haveman and Wolfe, 2015). To enhance the understanding of education production functions in the context of Côte d’Ivoire, this study also considers Amartya Sen’s “Capability Approach” which focuses on access, equity and quality education (Sen, 1993), and Bandura’s Social Cognitive Theory (Bandura, 2011) which examines teacher-student interactions, motivation and learning environments. Thus, our study brings and blinds together elements of the above theories. International Journal of Management, Economics and Social Sciences 6 Empirical Review Official Development Assistance and School Performance The Education Production Function (EPF) theory considers financial resources as the key input because it supports the resources, teacher quality, infrastructure, and programs all that are of great importance for performance via optimal student learning outcomes. While the efficiency of spending is important, research by scholars such as Hanushek (2007), Krueger (1999), and Woessmann (2016) consistently demonstrates that adequate and well-targeted funding can lead to improvements in educational quality, equity, and student achievements. Therefore, considering funding as a vital input in the education production function is crucial for understanding how to enhance educational systems. A specific aspect of funding has to do with development aid which plays a pivotal role in the education production function, particularly in countries that lack the financial resources to invest adequately in their education systems. Research consistently shows that well-targeted ODA which is a mechanism for financial support from governments and their agencies to developing countries and territories can improve educational outcomes. Collier (2007), Dreher et al . (2006), and Michaelowa and Anke (2007) demonstrate ODA’s positive impact on access, infrastructure, and education quality. Recent studies reinforce these findings: Yogo (2017) assessed the effectiveness of foreign Aid in the education sector in Africa focusing on primary education in a panel data setting with data ranging from 2000 to 2010 for 35 countries. He found that higher aid to education significantly increases primary completion rate in Africa. Lim (2021) studied the association between foreign aid for education and educational outcomes in a panel data setting with data ranging from 1970 to 2013. The author showed that higher per capita education aid associates with increased enrollment and completion rate. Musa et al . (2021) analyzed the impact of foreign aid on education and health outcomes in Nigeria using dynamic ordinary least squares in a vector autoregressive model setting with data ranging from 1980 to 2019. Their results revealed foreign aid’s significant positive impact on primary school enrollment and completion rates in Nigeria. Similarly, Lekhak (2023) examined the relationship between education aid and different levels of schooling, specifically primary, secondary, and tertiary education. The author analyzed the impact of education aid on completion rates for females and males at the primary level. The study used data from a panel of 50 low and lower-middle-income countries spanning over the period ranging from 2002 to 2020 in a system Generalized Method of Moments (GMM) setting. The author found education aid to have a positive impact on primary education outcomes, specifically completion rates. The positive relationship was confirmed by Sangaré and N’Zué (2023) in their study of the impact of ODA on school performance within the West African Economic and Monetary Union (WAEMU). They used a panel ARDL model with data ranging from 2002 to 2021. Unlike the above N’Zué 7 empirical studies, ODA may not always positively influence school performance. For instance, there are studies that showed mixed to no impact of ODA on primary school performance (Addis and Tura, 2018; Miyamoto and Chiofalo, 2020). However, given the higher number of studies that found a positive influence of ODA on school performance, it can be inferred that by providing critical resources for building schools, training teachers, and reforming curricula, development aid could certainly enable countries to achieve better educational outcomes. H1: Official development assistant positively influences school performance. Teacher-to-Pupils Ratio and School Performance This ratio refers to the number of teachers available per student in a classroom. A lower teacher-topupil ratio means fewer students per teacher, which can lead to more personalized instruction, greater student engagement, and better learning outcomes. The teacher-to-pupil ratio is a key input in the education production function because it directly influences the quality of instruction, classroom management, and student engagement (Glewwe and Muralidharan, 2016a). By allowing teachers to provide more individualized attention and reducing their workload, lower teacher-to-pupil ratios create a more conducive learning environment. Several scholars have provided strong empirical evidence that reducing class size, and thus improving the teacher-to-pupil ratio, can lead to significant improvements in student outcomes. Card and Krueger (1992) linked lower teacher-to-pupil ratios to higher future earnings. They measured school quality by the pupil/teacher ratio and found that men who were educated in states with higher-quality schools have a higher return. Krueger’s (1999) work on the Tennessee STAR experiment in which students were given a set of standardized tests at the end of each school year for four years. Students were randomly assigned to different class sizes (small, regular, and regular/aide). They found that students in smaller classes performed better thus supporting the argument that a lower teacher-to-pupils ratio (small classes) can improve student outcomes. Ladd’s (2002) research highlighted that pupil in smaller class sizes (mostly private schools) performed better than those in larger class sizes (mostly public schools). In his international comparisons of education systems, Woessmann (2003) studied various inputs to the education production function, including class size and teacher-to-pupil ratios. He found that while teacher quality and other factors play a significant role, reducing class size can enhance student outcomes. Chetty et al . (2011), in their research on long-term impacts of education inputs, using data from Project STAR (indicated earlier) found that students assigned to smaller classes in early grades were more likely to attend college. Their study demonstrated the long-term benefits of smaller classes. International Journal of Management, Economics and Social Sciences 8 Similar results were found by Kamwitha (2023) who studied the influence of pupil-teacher ratio in Early Childhood Education (ECE) on graduation rates in integrated Embu County public primary schools, Kenya. The author showed a positive correlation between pupil-teacher ratio and internal efficiency. Consequently, we can infer from the above that high teacher to pupil ratio (a proxy of education quality) negatively influences school performance. H2: Teacher-to-pupil ratio negatively influences school performance. Political Stability and School Performance Political stability as an element of governance is a key input in the education production function model (Bloom and Sachs, 1998; Collier and Hoeffler, 2004). Indeed, it affects various aspects of educational delivery, and can have disruptive effects on educational outcomes (Collier and Hoeffler, 2004). For instance, it allows to maintain consistent investments in education over the long-term and supports the establishment of effective policies, education budgets, and reform agendas without the disruption of governance changes or conflict. This long-term commitment is essential for building quality educational infrastructure, teacher recruitment, training, retention, and the consistent provision of educational materials. Thus, political stability ensures continuity in educational policies and investments. Several scholars have emphasized political stability in the education production function. For instance, Bénabou (1996) showed how political instability leads to short-termism in government policies and reduces longterm educational outcomes. In the same line, Alesina et al . (1996) showed the negative impact of political instability on economic growth and education. In addition, Bloom and Sachs (1998), in their research on global development, argued that political stability supports sustained educational improvements and showed how political instability in low-income countries often leads to the underfunding of social services, including education. Similarly, while analyzing the relationship between civil conflict and education, Collier and Hoeffler (2004) highlighted how political instability and conflict can disrupt educational systems. In the same vein, Davies (2007) argued that political stability enhances education outcomes. Countries with stable political environments are better able to invest in their education systems, provide equitable access, and improve long-term educational outcomes. Based on above instances, political stability is a key input in the education production function since it creates the conditions necessary for sustained investment, continuity of policies, and a safe learning environment. We therefore hypothesize that: H3: Political stability positively influences school performance. Government Education Expenditures and School Performance N’Zué 15 ARDL (1,0,1,1,0,1) ARDL (1,0,1,0,1) Coefficient Coefficient ECT -0.836** -0.884** Long Run Dynamics Lnaidprim -0.067 -0.059† G dpgr - 0 .002 Lnratensel 0.784 -0.859† Dstabpol -0.541* -0.510* D lndepped 0.223 - 0.011 Short Run Dynamics D1. Gdpgr -0.007 D1. lnratensel -1.457** -1.500** D1. dlndepped -0.262 -0.326* Cons -2.707 -3.077† Adj R - sqrt 0.789 0.777 Breusch–Godfrey LM Test for Autocorrelation chi2(1) 6.634* 2.034 White’s Test for Heteroskedasticity chi2(18) 18.000 18.000 Skewness 8.140 5.89 Kurtosis 0.320 0.000 Source: Author’s calculation using STATA †p <.10 *p < .05; **p < .01; Dependent variable: dlnschoolperf Table 6. Results of the Estimated ARDL(p,q) Models -Teacher-Pupil Ratio (lnratensel): A 1% increase in the teacher-pupil ratio decreases primary school performance by approximately 0.86%. This is also significant only at the 10% probability level (p-value = 0.094). This result is also partially supportive of the hypothesis that teacher-to-pupil ratio negatively influences primary school performance. -Political Stability (dstabpol): The coefficient (-0.510) suggests that a unit increase in the change in political stability decrease changes in primary school performance by approximately 0.51% (p-value = 0.011). Let’s recall that the political stability index ranges from -2.5 to 2.5. For Côte d’Ivoire, this index has always been negative over the period of analysis. Thus, an improvement of this index is tantamount to an increase in the value of the index moving closer to positive number. The empirical result could be thought as counterintuitive. However, it is a stable political environment that could have a positive bearing on school performance. But a political environment that is always changing may not be conducive to improved school performance. Indeed, political instability (frequent change in government) could lead to education reform which will not necessarily yield the expected outcome (improved primary school performance). For instance, results of the “CONFEMEN Education System Analysis Programme” 2014 International Journal of Management, Economics and Social Sciences 16 (PASEC144) and 2019 assessments (PASEC19) showed that despite reforms implemented after PASEC14, primary school performance did not improve in Côte d’Ivoire five years later (PASEC, 2020). The more reforms were implemented (with change in government) the worse the quality of the primary school performance became (The result does not support the initial hypothesis but it captures well the state of the quality of the primary education system in Côte d’Ivoire). -Government Education Expenditure (lndepped): Here, the coefficient (-0.011) is insignificant (p-value = 0.976), indicating that Government education expenditures have no long-run impact on the changes in primary school performance. This result is also not supportive of the hypothesis that Government Education Expenditures positively influence changes in primary school performance. Short-Run Dynamics With respect to Teacher-Pupil Ratio ( D1.lnratensel ), the coefficient (-1.500) indicates that a 1% increase in the teacher-pupil ratio decreases the change in primary school performance by approximately 1.5% in the short run (p-value = 0.005). This result is supportive of the hypothesis that teacher-to-pupil ratio negatively influences primary school performance. Similar result is found for Government Education Expenditure ( D1.lndepped ). The coefficient (-0.326) indicates that a 1% increase in the change of government education expenditure decreases the change in primary school performance by approximately 0.33% in the short-run (p-value = 0.033). Unlike the long-run result which was not significant, in the short-run although the result is not supportive of the hypothesis that Government Education Expenditures positively influence changes in primary school performance, but it is statistically significant. Error Correction Model (ECM) The ECM coefficient (-0.884) indicates that approximately 88.4% of the disequilibrium of the change in primary school performance is corrected in the next period. Diagnostic Tests For post-estimation diagnostic tests, we considered several tests i.e. Breusch-Godfrey Lagrange Multiplier (LM) test, the White’s test for heteroskedasticity, the CUSUMSQ graph for stability test, and the Skweness and Kurtosis tests for Normality. The Breusch-Godfrey LM test showed No autocorrelation (p-value = 0.153). Similarly, the White’s test for heteroskedasticity failed to reject the null hypothesis of homoskedasticity (p-value = 0.389). The CUSUMSQ graph, as shown in Figure 6, appears stable, with no significant breaks or divergences from the straight line. This suggests that there is no structural breaks which implies that the model’s N’Zué 17 parameters remain relatively constant over time. Moreover, the squared residuals do not exhibit significant patterns or trends. Source: STATA 17 output Figure 6. CUSUMSQ Graph The Skewness (p-value = 0.552) and Kurtosis (p-value = 0.996) tests for normality failed to reject the null hypothesis of normality. The ARDL (1,0,1,0,1) model is therefore suitable for analyzing the relationship between ODA to primary education, government education expenditure, and changes in primary school performance. The model’s coefficients (reported earlier) can consequently be relied upon for inference. DISCUSSION The empirical findings from this study align with and contribute to the existing literature on the impact of Official Development Assistance (ODA), teacher-to-pupil ratio, political stability, and government education expenditure on primary school performance. In the long-run, the results indicate that ODA to primary education has a negative and significant impact on changes in primary school performance (p-value < 0.10), suggesting that aid may not be effectively targeted or utilized. This finding is consistent with Addis and Tura (2018), who reported mixed effects of ODA on education outcomes in Sub-Saharan Africa. It is also in line with Miyamoto and Chiofalo (2020) findings of limited impact of ODA on primary education completion rates. The reason this result could be that ODA is not effectively targeted or utilized in the country because of corruption or insufficient capacity. However, this study’s negative coefficient contrasts with Glewwe and Maïga’s (2011) findings of positive effects of ODA on primary education enrollment rates. On Teacher-Pupil Ratio, the long-run results also show significant negative impact (p-value < 0.10) on primary school performance supports findings by Hanushek et al . (2013), who emphasized the International Journal of Management, Economics and Social Sciences 18 importance of optimal teacher deployment and UNESCO (2019), which highlighted the need for adequate teacher-pupil ratios. In addition, the findings confirmed studies by Card and Krueger (1992), Krueger (1999), Ladd (2002), Woessmann (2003), Chetty et al . (2011), and Kamwitha (2023). A high ratio of teachers to pupils indicates an inadequacy of qualified teachers in the education system. When there are not enough teachers to cater to the educational needs of all students, it can lead to overcrowded classrooms and limited individual attention, resulting in a lower quality of education. This could impact students’ ability to learn effectively and complete their primary education successfully. In addition, when there is a high ratio of teachers to pupils, teachers may have excessive workloads, with larger class sizes and more students to manage. This can lead to increased stress, burnout, and reduced motivation among teachers. Fatigued and overwhelmed teachers may find it challenging to provide the necessary support and personalized attention required for students to thrive academically. On changes in political Stability, its significant (p-value < 0.05) negative relationship with changes in primary school performance aligns with Alesina et al . (1996), who demonstrated the negative impact of political instability on economic growth and education and Davies (2007), who found that political stability enhances education outcomes. A politically stable environment allows schools to remain open and operate consistently. Students could attend school regularly without disruptions, conflict, or closures. Political stability enables governments to prioritize investments in education, including primary education with a greater likelihood that sufficient budgetary allocations would direct towards the sector thereby improving school infrastructure, availing learning materials, and ensuring teacher recruitment and training, which could positively impact changes in primary education completion rates. On Government Education Expenditure, the insignificant impact of government education expenditure on primary school performance resonates with Gupta et al . (2019) on the inefficient allocation of education resources, and Oketch and Rolleston (2007) on the limited impact of increased education spending. This may result from ineffective or inefficient targeting of education expenditures. In the short-run, results reveal intriguing insights into the relationships between the variables. Indeed, on teacher-pupil ratio, the coefficient (-1.500) is negative and significant (p-value = 0.005), indicating that an increase in the teacher-pupil ratio harms primary school performance in the short term. This finding aligns with UNESCO’s (2019) emphasis on optimal teacher deployment for quality education. On Government education expenditures, interestingly, the result (-0.362) exhibits a negative and significant impact on changes in primary school performance (p-value = 0.033). This result resonates with Oketch and Rolleston’s (2007) findings on the inefficiency of education expenditure in Africa. These findings highlight the complexity of education development and the need for nuanced policy approaches. CONCLUSION N’Zué 19 This study examined the impact of Official Development Assistance (ODA) to primary education, teacher-to-pupil ratio, political stability, and government education expenditure on changes in primary school performance in Côte d’Ivoire. The findings confirm that the research objective has been fulfilled, providing valuable insights into the complex relationships between these variables. The results suggest that in the long-run, 1) ODA to primary education has a negative and significant impact on changes in primary school performance in Côte d’Ivoire. 2) Teacher-pupil ratio shows significant negative impact on changes in primary school performance. 3) Changes in political stability negatively impacts changes in primary school performance. Lastly, 4) Government education expenditure has an insignificant impact on changes in primary school performance. In the short-run, Teacher-pupil ratio, has a negative and significant impact on changes in primary school performance. Government education expenditures also have a negative and significant impact on changes in primary school performance. In light of the above, this study contributes to the literature on aid effectiveness and education development, highlighting the importance of considering the nuances of aid allocation and utilization. The findings support the notion that education outcomes are influenced by a complex interplay of factors, including policy stability and resource allocation. The results have significant implications for policymakers, and donors i.e., 1) Efficient aid allocation and utilization strategies should prioritize teacher deployment and policy stability. 2) Governments should focus on optimizing resource allocation and improving education sector planning. 3) Donors should align funding with recipient countries’ education priorities and support capacity-building initiatives. Our findings consequently underscore the need for efficient aid allocation, optimal teacher deployment, and stable policy environments to enhance primary education outcomes. RECOMMENDATIONS In line with the findings, the following recommendations to Policy Makers are in order: 1) There is the need to ensure that ODA is targeted, efficient, and aligned with recipient countries’ education priorities; 2) The country should implement policies that promote optimal class size; and 3) the country should endeavor to maintain a stable policy environment that is conducive to education. To Donors, we would recommend that they should 1) support capacity-building initiatives for effective aid management, and 2) prioritize education sector funding with clear performance metrics. IMPLICATIONS The study’s findings have significant implications i.e., theoretical, managerial, and policy. In terms of International Journal of Management, Economics and Social Sciences 20 theoretical implications, our study strongly supports that the education production function incorporate development aid, government education expenditures, and political stability (policy environment), and teacher-to-pupil ratio (school resources) as key inputs that have a bearing on educational outcomes. Although the policy environment is already among the inputs, it is not usually disaggregated to account for development aid, government education expenditures, and political stability. In the same vein, teacher-to-pupil ratio should be considered when specifying the education production function. In terms of management implications, there is the need to develop the capacity of all stakeholders involved in the education system to ensure the efficient management of resources including ODA. Regarding policy implications our findings emphasize the need to ensure the optimization of teacher deployment for an optimal teacher-to-pupil ratio to improve primary school performance. Countries are encouraged to maintaining a stable policy environment, allocating education resources efficiently to maximize impact, and developing stakeholders’ capacity for effective aid management and utilization. In addition, Donors and International Organizations, should prioritize education sector funding with clear performance metrics and support capacity-building initiatives for effective aid management. LIMITATIONS AND FUTURE DIRECTIONS The limitations of this study include 1) data availability constraints (20 observations), 2) possibility of omitted variable issues, and 3) focus on primary education only. With the limited data range, only limited number of possible explanatory variables could be included in the education production function. By addressing these limitations and implementing the recommended policies, Côte d’Ivoire can optimize ODA and government education expenditure to improve primary school performance. Going forward, we would like to 1) investigate the impact of ODA in different education sub-sectors i.e., the secondary education sector and tertiary education sector, 2) analyze the relationship between education expenditure and economic growth, and 3) have a broader geographic scope by utilizing a panel of countries. 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