IDEAS home Printed from https://ideas.repec.org/a/jed/journl/v45y2020i4p37-47.html
   My bibliography  Save this article

Aid Inflows and Economic Growth: Grants and Loans in the Case of Kenya

Author

Listed:
  • Sang-Chul Yoon (a) and Jai S. Mah (b)

    ((a) Dankook University, South Korea, (b) Ewha Womans University, South Korea)

Abstract

The present paper compares the impact of grants and concessional loans on economic growth in Kenya and examines whether or not different degrees of political freedom influence this. Autoregressive distributed lags variance bounds tests and error correction models indicate that investment caused economic growth significantly. There is little evidence of globalization-related variables causing economic growth. Grants appear to have affected economic growth negatively, while there is no significant evidence of an effect of concessional loans. This implies that Kenya needs to pursue its own economic development strategy not relying on aid inflows. The impact of grants or loans on economic growth is revealed to be not conditional upon the degree of political freedom in Kenya.

Suggested Citation

  • Sang-Chul Yoon (a) and Jai S. Mah (b), 2020. "Aid Inflows and Economic Growth: Grants and Loans in the Case of Kenya," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(4), pages 37-47, December.
    • Handle: RePEc:jed:journl:v:45:y:2020:i:4:p:37-47
    DOI: 10.35866/caujed.2020.45.4.002
    as

    Download full text from publisher

    File URL: http://www.jed.or.kr/full-text/45-4/2.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.35866/caujed.2020.45.4.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Narayan, Seema & Narayan, Paresh Kumar, 2024. "Clean energy for the Pacific Island countries: Does donor funding promote this transition?," Energy Economics, Elsevier, vol. 134(C).

    More about this item

    Keywords

    Aid; Grants; Loans; Economic Growth; Kenya;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:45:y:2020:i:4:p:37-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sung Y. Park (email available below). General contact details of provider: https://edirc.repec.org/data/eccaukr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.