2019
DOI: 10.1080/23311886.2019.1625741
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Foreign aid and poverty reduction: A review of international literature

Abstract: This main objective of this paper is to present a synthesis of the empirical literature on the effectiveness of foreign aid on poverty reduction. This is done through a review of empirical studies on the impact and effectiveness of official development assistance (ODA) or foreign aid on poverty reduction. The study divided the reviewed empirical literature into two broad groups: the studies which used non-monetary measures of poverty and those that used monetary measures of poverty. The survey results show tha… Show more

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Cited by 38 publications
(27 citation statements)
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“…The disbursement of Official development assistance (ODA) or what is now more commonly known as foreign aid, started after World War 2 (Mahembe & Odhiambo, 2019;World Bank, 1998). Aid consists of all resources, which may comprise of physical goods, skills, knowledge, technology, or financial grants and loans, that are transferred from donor countries to recipient countries (Mahembe & Odhiambo, 2019;Riddell, 2008). Although wealthy countries are sometimes recipients of aid, especially in natural disasters, economic crisis, or emergencies, most recipients of aid are poor and developing countries.…”
Section: Foreign Aidmentioning
confidence: 99%
See 1 more Smart Citation
“…The disbursement of Official development assistance (ODA) or what is now more commonly known as foreign aid, started after World War 2 (Mahembe & Odhiambo, 2019;World Bank, 1998). Aid consists of all resources, which may comprise of physical goods, skills, knowledge, technology, or financial grants and loans, that are transferred from donor countries to recipient countries (Mahembe & Odhiambo, 2019;Riddell, 2008). Although wealthy countries are sometimes recipients of aid, especially in natural disasters, economic crisis, or emergencies, most recipients of aid are poor and developing countries.…”
Section: Foreign Aidmentioning
confidence: 99%
“…More recent studies suggest that for aid to reduce poverty, it should be targeted at the right programmes and objectives such as job creation, and directly at social expenditure on health, and education (Guillaumont & Wagner, 2014;Michaelson, 2015;Page & Shimeles, 2015). While democracy enhances the effectiveness of aid (Arvin & Barillas, 2002;Kosack, 2003;Mahembe & Odhiambo, 2019), unfortunately, the ideology of ruling political parties play a role in how aid received is put to use in African countries (Tawiah et al, 2019).…”
Section: Foreign Aidmentioning
confidence: 99%
“…Other studies have also verified benefits to economic growth via external assistance provided to countries with high indices of poverty. In such cases, investments in areas such as education, health, treated water, basic sanitation, improvements to public transportation, energy, communications and urban infrastructure led to increased income for the population living in poverty [42][43][44].…”
Section: Discussionmentioning
confidence: 99%
“…The debate on the possible role of ODA has remained dominant in recent African development literature (Mahembe & Odhiambo, 2019;Asongu & Nnanna, 2018;Quibria, 2014;Asongu & Nwachukwu, 2018;Bwire, Lloyd & Morrissey, 2017;Crivelli & Gupta, 2017;Asongu & Nnanna, 2019;Ezeaku, Egbo, Nwokoby & Onwumere, 2019;Asongu & Leke, 2019;Moyo & Mafuso, 2017;Asongu, 2016;Mascagni & Timmis, 2017). Barring the controversy between statistical reality and political expediency, the underlying definition of ODA is actually anchored on the principle of developmental motivation.…”
Section: Empirical Literaturementioning
confidence: 99%