Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness
This paper aims to analyse the effect of foreign aid, moderated by governance effectiveness variables, on economic development in sub-Saharan Africa. Data on foreign aid, GDPand governance variables were from the World Bank governance archives covering five sub-Saharan African countries. The paper...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Primorska
2021-12-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | https://212.235.226.96/index.php/fm/article/view/47 |
| _version_ | 1797398837438971904 |
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| author | Richard Ilorah Collins C. Ngwakwe |
| author_facet | Richard Ilorah Collins C. Ngwakwe |
| author_sort | Richard Ilorah |
| collection | DOAJ |
| description |
This paper aims to analyse the effect of foreign aid, moderated by governance
effectiveness variables, on economic development in sub-Saharan
Africa. Data on foreign aid, GDPand governance variables were from the
World Bank governance archives covering five sub-Saharan African countries.
The paper applied the ols and fixed effect panelmultiple regression
analysis. From the first analysis, findings show a negative link between external
aid and GDP per capita in sub-Saharan Africa. In the second analysis
with governancemoderating variables, findings indicate a positive relationship
between foreign aid and GDP with rule of lawproviding a positive
boost toforeignaidand GDP growth, but corruption and governance have
a negative relationship with economic growth. The paper highlights policy
implications for the need to bridle corruption and to strengthen governance
institutions to enable foreign aid to function effectively toward economic
growth. The paper suggests an agenda for further research to apply
more governance institution variables in further analysis of aid effectiveness
in sub-Saharan Africa economic growth.
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| first_indexed | 2024-03-09T01:31:18Z |
| format | Article |
| id | doaj.art-73ee50da2e3b4629967fe543a22864a5 |
| institution | Directory Open Access Journal |
| issn | 1854-6935 |
| language | English |
| last_indexed | 2024-03-09T01:31:18Z |
| publishDate | 2021-12-01 |
| publisher | University of Primorska |
| record_format | Article |
| series | Managing Global Transitions |
| spelling | doaj.art-73ee50da2e3b4629967fe543a22864a52023-12-09T11:47:33ZengUniversity of PrimorskaManaging Global Transitions1854-69352021-12-01194Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance EffectivenessRichard Ilorah0Collins C. Ngwakwe1University of LimpopoUniversity of Limpopo This paper aims to analyse the effect of foreign aid, moderated by governance effectiveness variables, on economic development in sub-Saharan Africa. Data on foreign aid, GDPand governance variables were from the World Bank governance archives covering five sub-Saharan African countries. The paper applied the ols and fixed effect panelmultiple regression analysis. From the first analysis, findings show a negative link between external aid and GDP per capita in sub-Saharan Africa. In the second analysis with governancemoderating variables, findings indicate a positive relationship between foreign aid and GDP with rule of lawproviding a positive boost toforeignaidand GDP growth, but corruption and governance have a negative relationship with economic growth. The paper highlights policy implications for the need to bridle corruption and to strengthen governance institutions to enable foreign aid to function effectively toward economic growth. The paper suggests an agenda for further research to apply more governance institution variables in further analysis of aid effectiveness in sub-Saharan Africa economic growth. https://212.235.226.96/index.php/fm/article/view/47foreign aideconomic developmentgovernance institutionspoverty |
| spellingShingle | Richard Ilorah Collins C. Ngwakwe Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness Managing Global Transitions foreign aid economic development governance institutions poverty |
| title | Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness |
| title_full | Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness |
| title_fullStr | Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness |
| title_full_unstemmed | Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness |
| title_short | Foreign Aid and Economic Development in Sub-Saharan Africa: The Mediating Role of Governance Effectiveness |
| title_sort | foreign aid and economic development in sub saharan africa the mediating role of governance effectiveness |
| topic | foreign aid economic development governance institutions poverty |
| url | https://212.235.226.96/index.php/fm/article/view/47 |
| work_keys_str_mv | AT richardilorah foreignaidandeconomicdevelopmentinsubsaharanafricathemediatingroleofgovernanceeffectiveness AT collinscngwakwe foreignaidandeconomicdevelopmentinsubsaharanafricathemediatingroleofgovernanceeffectiveness |