Asymmetric and shock effects of foreign AID on economic growth and employment generation

Asaleye, Abiola John; Ojo, Adeola Phillip; Olagunju, Opeyemi Eunice

doi:10.1016/j.resglo.2023.100123

Cited by 8 publications

(8 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Conversely, financial dependence may worsen vulnerability to GBV. Social and human capital, integral to the model, underline the importance of education and community support in the form of foreign aid (Duflo 2012;Asaleye et al 2023). In addition to this, educated and socially connected women often possess enhanced decision-making abilities and are more likely to resist GBV.…”

Section: The Connection Between Women's Empowerment and Gender-based ...mentioning

confidence: 99%

“…Studies have documented that institutional quality and foreign aid transmitted three main effects on the economy: the shock impact, short-run effects, and long-run effects (Asaleye et al 2023). As a result of the channels of transmission and significance of the study, this current work can be distinguished from other studies by the method utilized and its objectives which involve (i) examining the impact of foreign aid and institutional quality on women's empowerment and GBV using cross-sectional autoregressive lags, (ii) examining the shock effect of foreign aid on the indicators of women's empowerment and GBV using the Panel Vector Correction Model, and (iii) investigating the mediating role of institutional quality and foreign aid on women's empowerment and GBV.…”

Section: A Summary Of the Literature Review And Identification Of Gapsmentioning

confidence: 99%

“…Let us assume that the indicators of women's empowerment and GBV are represented by REG. Following the study by (Asaleye et al 2023), with slight modifications to achieve the aim of this current study, the variables are ordered in the VECM specification as follows:AID, IPC, IG1, IG2, REG, WAG, EMP. Also, in Equation ( 15), EC is the error correction term.…”

Section: Theoretical Framework and Model Specificationmentioning

confidence: 99%

“…Strong evidence suggests that foreign aid is effective when implemented properly (Elbert 2013), and one of the factors responsible for this is the role of institutions. Institutions include government bodies, regulatory agencies, legal frameworks, and other structures that shape the functioning of a society or a specific sector (Acemoglu et al 2005;Asaleye et al 2023), which are measured by institutional quality (Kaufmann et al 2010). A country's improved institutional quality implies welldesigned, transparent, and accountable means that are capable of achieving long-term growth and development without corruption or inefficiency (Acemoglu et al 2005).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Foreign Aid and Institutional Quality towards Reducing Gender-Based Violence

Asaleye,

Strydom

2023

Social Sciences

Self Cite

View full text Add to dashboard Cite

Studies have shown a possible link between women achieving some degree of economic independence through empowerment and a decline in gender-based violence (GBV). However, inadequate funding has been a major challenge in developing economies, while foreign aid has been seen as an alternative funding source. Foreign aid for promoting women’s rights and gender equality is improving in African countries. Yet, according to official statistics, the frequency of GBV in Africa is among the highest in the world. Given this, this paper examines the impact of women’s aid and institutional quality on factors that can reduce GBV using both cross-sectional autoregressive lags to investigate short- and long-run implications and the Panel Vector Correction Model to examine the shock effect of aid on other variables. Also, the mediating role of institutional quality and women’s aid are considered. The metrics used for the factors that reduce GBV are female children out of school, the secondary school gender parity index, the genital mutilation prevalence rate, and the metrics for institutional quality are the rules of law and government effectiveness. The implications from the findings show that enhancing the legal structure is very important in Africa, given the low coefficient values to reduce discrimination against the right to education; more should be done to increase the enrolment of female students through the maximisation of women’s aid in order to achieve the short- and long-term objectives of reducing gender violence. The findings also show that the rule of law significantly aids in the reduction of female genital mutilation in the short and long run; government effectiveness is insignificant. Also, they show that women’s aid also reduces female genital mutilation, albeit at a low rate. The results of this study call for strong enhanced government support and funding to end the practice of female genital mutilation and discrimination against female education in the short and long run.

show abstract

Section: The Connection Between Women's Empowerment and Gender-based ...mentioning

confidence: 99%

Section: A Summary Of the Literature Review And Identification Of Gapsmentioning

confidence: 99%

Section: Theoretical Framework and Model Specificationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Foreign Aid and Institutional Quality towards Reducing Gender-Based Violence

Asaleye,

Strydom

2023

Social Sciences

Self Cite

View full text Add to dashboard Cite

show abstract

“…Foreign aid may help in getting additional capital as a gift from the nations which may help in the economic growth of recipient countries (Maruta et al, 2020). Asaleye et al (2023) in their paper also discusses that aid can act as a source of capital and help in economic growth. Foreign aid is one of the significant external finance for a country.…”

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

Financial development and growth nexus in Asian countries: mediating role of FDI, foreign aid and trade

Patra,

Sethi

2023

IJSE

View full text Add to dashboard Cite

PurposeThis paper analyzes the direct effect of financial development and the mediating impact of financial development through foreign direct investment (FDI), foreign aid and trade on economic growth for all Asian countries.Design/methodology/approachA fixed-effect model with Driscoll–Kraay panel corrected estimators was employed to find the direct and mediating impact of financial developments on growth for all 47 Asian economies from 1980 to 2020. The bootstrapped panel-quantile regression (BPQR) model is used to check how this effect varies for different income groups of countries.FindingsThe results demonstrated that financial development positively impacts countries' economic growth. The interaction effect of financial development with FDI, foreign aid and foreign trade negatively impacts economic growth. The BPQR results showed that FDI and foreign aid help in the growth of lower quantile economies; however, the impact is negative for middle- and upper-income countries. Trade impacts growth positively for all the quantiles of economies.Research limitations/implicationsThe results suggest that the Asian economies must continue to provide thrust on the financial development of their own countries to achieve better growth. It also implied that the dependence on external finance is good for low-income countries and not advisable for middle- and upper-income countries.Originality/valueTo the best of the authors’ knowledge, the current study is the first to provide empirical evidence on analyzing both the direct and interaction effect of financial development on economic growth by considering all the Asian economies.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2022-0587

show abstract