The effectiveness of foreign aid on economic growth Evidence from Anglophone West Africa
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| Dokumentumtípus: | Diplomadolgozat |
| Kulcsszavak: | economic assistance economic development GDP international economic relations OECD |
| Online Access: | http://dolgozattar.uni-bge.hu/41405 |
| Kivonat: | Developing countries over the past decade have been receiving foreign aid in huge amounts as development efforts of more advanced countries to alleviate poverty and promote economic growth, however there seems to be a growing debate around the effectiveness of so-called aid on the economic growth of recipient countries. . This study has two empirical objectives, which are: To test the effectiveness of foreign aid on economic development over the period 1990-2019, and to check the impact of sectoral aid on economic growth form 2002-2019, using regression analysis. The panel data was collected on the sample of the five Anglophone West African countries; The Gambia, Ghana, Liberia, Nigeria and Sierra Leonne over the respective periods. The results of the study show that over the period 1990-2019, aid has a negative effect in its relationship with growth when interacted with the other chosen explanatory variables. foreign aid is found to be ineffective in driving economic growth in the region. Upon segregation of the aid into functional sectors, the results showed that sectoral aid is also an insignificant factor in explaining the changes in per capita growth rate in the region, though aid provided for social infrastructure and the production sector have a positive relationship with economic growth in the model. |
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