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The differential effects of foreign aid to sub-Saharan Africa

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  • Akame, Afuge
  • Mavrotas, George

Abstract

This paper explores the impact of various forms of donor aid on economic growth in 39 sub-Saharan African countries from 2002 to 2020. The findings suggest that while total aid positively influences growth, different aid modalities have varying effects, with project aid and technical assistance boosting growth, while budget support and humanitarian assistance hinder it. The study emphasizes the importance of disaggregating aid types in research on aid effectiveness, challenging the traditional approach of using a single figure for aid in policy recommendations.

Suggested Citation

  • Akame, Afuge & Mavrotas, George, 2024. "The differential effects of foreign aid to sub-Saharan Africa," IOB Discussion Papers 2024.01, Universiteit Antwerpen, Institute of Development Policy (IOB).
    • Handle: RePEc:iob:dpaper:202401
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    File URL: https://medialibrary.uantwerpen.be/files/2137/55d134dc-441f-4b23-91af-7499188fc99a.pdf
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    References listed on IDEAS

    as
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    3. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Inequality and gender economic inclusion: The moderating role of financial access in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 173-185.
    4. Asongu, Simplice A. & Odhiambo, Nicholas M., 2020. "Inequality and gender inclusion: Minimum ICT policy thresholds for promoting female employment in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(4).
    5. Chala Amante Abate, 2022. "The relationship between aid and economic growth of developing countries: Does institutional quality and economic freedom matter?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2062092-206, December.
    6. Agénor, Pierre-Richard & Aizenman, Joshua, 2010. "Aid volatility and poverty traps," Journal of Development Economics, Elsevier, vol. 91(1), pages 1-7, January.
    7. Adusei, Elizabeth, 2020. "The impact of Foreign Aid on Economic Growth in Sub-Sahara Africa: The mediating role of Institutions," MPRA Paper 104561, University Library of Munich, Germany.
    8. Jan-Erik Antipin & George Mavrotas, 2006. "On the Empirics of Aid and Growth: A Fresh Look," WIDER Working Paper Series RP2006-05, World Institute for Development Economic Research (UNU-WIDER).
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    Keywords

    aid; sub-Saharan Africa;

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