Aid type and its relationship with human well being

This paper examines the effects of foreign aid type on human well being. Cross-country regressions revealed aid for education and water to be positively correlated with human well being in low-income countries while aid for education and health are positively correlated with human well being in lower-middle-income countries. The results also confirm growth in output and gross domestic investment to be positively associated with human well being in low- and lower-middle-income countries. In the low-income countries, it is also found that unproductive government expenditure, conflicts and rural populations are negatively correlated with human well being. Conflicts and rural populations are also negatively correlated with human well being in the middle-income countries.