Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
991744 | World Development | 2014 | 10 Pages |
Abstract
SummaryThis study investigates the effects of aid inflows and the volatility of public investment on economic growth in 26 Sub-Saharan African countries over the period from 1992 to 2011. Three volatility variables comprising aid, government revenue, and public investment are incorporated into an aid-growth model to test for their effect on economic growth. Using the Generalized Method of Moments (GMM) technique and averaged data for five four-year sub-periods, we show that although foreign aid has a positive impact on growth once potential endogeneity has been accounted for, aid effectiveness may have been eroded by volatility in public investment.
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Authors
Malimu Museru, Francois Toerien, Sean Gossel,