Assessment of the effectiveness of foreign aid on the development of Africa

Hongli, Jiang; Vitenu‐Sackey, Prince Asare

doi:10.1002/ijfe.2406

Cited by 12 publications

(6 citation statements)

References 49 publications

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“…By contrast, Brumm (2003) and Rajan and Subramanian (2005) document that aid does not facilitate growth even in recipient countries with relatively good economic policies. The results of Hongli and Vitenu‐Sackey (2020) and Leeson (2008) support the view that aid fails to facilitate growth and may even retard it. However, Dreher et al (2021) and Yusuf (2012) document a positive and significant impact of aid on growth and emphasize that the estimated effect is not conditional on the recipient countries' policy environment.…”

Section: Introductionmentioning

confidence: 80%

Externally funded trade policy reforms and firm productivity: Evidence from a world database of reforms funded by foreign aid agencies

Habyarimana

Kakkar

2023

Kyklos

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This paper examines the impact of externally funded trade policy reforms on firm productivity by combining data from the International Aid Transparency Initiative and World Bank Enterprise Surveys. By specifying baseline and endline surveys based on the 2006 to 2020 World Bank Enterprise Surveys, we find that 70 of 83 countries received external funds for trade policy reforms, and primarily use records based on 45,886 firms with data on productivity across these countries. Applying difference-in-differencesand triple-difference techniques, this paper finds that the impact of externally funded trade policy reforms is significant, accounting for 12% of firms' average productivity growth in the recipient countries relative to firms in nonrecipient countries. We also show that externally funded trade policy reforms improve firms' international-tradeclimate in the recipient countries by 0.17 standard deviations, which translates into a 27% increase in the average productivity of firms with a good international-tradeclimate in recipient countries over that of firms in nonrecipient countries and firms with poor international trade climate in recipient countries. These results suggest that interventions should focus on financing trade policy reforms that are more likely to improve the international-tradeclimate of firms in the recipient countries.

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Section: Introductionmentioning

confidence: 80%

Externally funded trade policy reforms and firm productivity: Evidence from a world database of reforms funded by foreign aid agencies

Habyarimana

Kakkar

2023

Kyklos

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“…Once stationarity and cointegration have been established, a correlation matrix is employed to evaluate the relationship between the dependent and independent variables, as well as to identify potential signs of multicollinearity. Multicollinearity refers to the condition wherein there exist multiple independent variables that exhibit correlation coefficients exceeding the threshold of -/+0.70 Jiang Hongli & Vitenu-Sackey, 2019;J. Hongli & Vitenu-Sackey, 2020;Vitenu-Sackey, 2020;Vitenu-Sackey & Barfi, 2021;.…”

Section: Methodology and Datamentioning

confidence: 99%

Government Expenditure and Economic Growth Nexus in Ghana

Bathuure

2024

IJECOP

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Purpose: Economic growth is widely regarded as a crucial indicator of economic advancement within a nation, as it has significant implications for the provision of state benefits, the improvement of living standards, and the generation of employment opportunities. The present study employed a time series analysis spanning from 1983 to 2018, focusing on Ghana, in order to comprehensively examine the diverse impact of both aggregate and disaggregated government expenditure and debt on the country's economic growth. Methodology: The study conducted initial examinations, including unit root tests, cointegration tests, and correlation matrices, to determine the statistical reliability and validity of the data series for the research. The long-run parameters were estimated using the two-stage least square regression method, the autoregressive distributed lag method, and the threshold regression method. Findings: Based on our research, it has been determined that government expenditure exerts a positive and statistically significant influence on overall economic growth. However, when examining the disaggregated effects, it becomes evident that consumption expenditure has a positive and significant impact on economic growth, whereas capital expenditure has a negative effect on economic growth. Unique Contribution to Theory, Practice and Policy (Recommendations): In relation to the prevailing economic conditions characterised by periods of prosperity or recession, it is evident that the government should prioritise its attention towards external debt rather than domestic debt during times of economic expansion. Moreover, during periods of economic downturn, it is imperative for the government to prioritise foreign direct investment as a means of financing its budget, rather than relying on debt

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“…They found that critical variables such as income and consumer credit can promote consumption levels. Jiang and Jiang [ 2 ] conducted a heterogeneity test and found that DFI has a more substantial promoting effect on rural areas than urban ones. Therefore, residents' consumption level and structure could be improved by narrowing the urban-rural income gap and optimizing industrial structure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Researchers study consumption upgrading by increasing total consumption and optimizing consumption structure to investigate consumption potential [ 2 , 3 ]. Existing research indicates that consumption levels have improved to some extent, however, because of the significant gap in economic development under the urban-rural dual system, rural residents' total consumption expenditure and structure levels are lower than those of urban residents [ 4 ].…”

Section: Introductionmentioning

confidence: 99%