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Aid, Domestic Governance, and Agricultural Growth in Developing Countries

Author

Listed:
  • Gidiglo, Ferguson Korbla
  • Srofenyoh, Francis Yao
  • Agyei-Henaku, Kofi Aaron Aboa-Offei
  • Badu-Prah, Charlotte
  • Agyeiwaa-Afrane, Akua
  • Djokoto, Justice Gameli

Abstract

This study departed from other agricultural aid-growth studies by measuring growth as the annual growth rate of agricultural value added and accounting for the moderating role of governance on the aid-growth effect. Using data on a panel of 117 developing countries from 1996 to 2020, aid negatively influenced agricultural growth. Governance had a negative but insignificant independent effect on growth. However, the interaction of governance with aid turned the aid-growth effect from a significant negative to a statistically insignificantly positive effect. Since the low level of governance produced the positive interaction effect, of the aid-growth relationship, escalation of (good) governance could produce a strong effect.

Suggested Citation

  • Gidiglo, Ferguson Korbla & Srofenyoh, Francis Yao & Agyei-Henaku, Kofi Aaron Aboa-Offei & Badu-Prah, Charlotte & Agyeiwaa-Afrane, Akua & Djokoto, Justice Gameli, 2024. "Aid, Domestic Governance, and Agricultural Growth in Developing Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(1), March.
    • Handle: RePEc:ags:aolpei:348964
    DOI: 10.22004/ag.econ.348964
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