Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2142826
Impact of income level and foreign aid on economic growth in Sub-Saharan Africa: the case of Anglophone and Francophone countries
E. Chuke Nwude
Sebastine Ugochukwu Ugwuegbe
Timothy Adegbayibi
Sažetak
The study examines the impact of foreign aid on economic
growth (EG) of 40 Sub-Saharan African countries classified according
to their colonial history and the level of income. Domestic
capital formation and labour participation served as control variables.
For empirical analysis, annual data for the period 1982–2018
are used, and a structural model is estimated using the pooled
mean group estimation approach. The results reveal that (1) bilateral
foreign aids (bfa) strongly favour the Francophone better
than the Anglophone as it exerts strong favourable effect on the
former (2) Multilateral aid exerts strong unfavourable effect on
the Anglophone but weak on the francophone (3) only bilateral
aid is a significant positive determinant of EG in low income
countries (LICs) and low middle income countries (LMICs) in the
long-run and in upper middle income countries (UMICs) in the
short-run. One percent increase in bfa increases EG by 1.829%,
18.95%, 7.998%, 40.19% and 187.2% in the Anglophone, francophone,
LICs, LMICs, and UMICs, respectively. These suggest that
to significantly increase output productivity in the regions more
of bilateral aid is required. To encourage inflow of foreign aid,
complementary gross fixed capital formation should be increased
and labour productivity enhanced.
Ključne riječi
Economic growth; foreign aid; pooled mean group; Sub-Saharan Africa
Hrčak ID:
306798
URI
Datum izdavanja:
30.4.2023.
Posjeta: 565 *