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Working Paper 221 - Employment Effects of Multilateral Development Bank Projects The Case of the African Development Bank

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Abstract

Employment impact of development aid in Africa is investigated using a set of projects implemented by the African Development Bank (AfDB) in the last 20 years. The results indicate heterogeneous effect of aid. Projects directed at productive sectors, mainly those that focus on financing small scale enterprises and microcredit institutions, tend to have the largest employment impact than those focussing on health and education. More importantly, the implied employment effect of AfDB projects is much larger than the potential employment that could be deduced from aid-growth-employment nexus using macro data, particularly in the last decade. This could be due to the shift in the focus of development assistance away from productive sectors over this period. If inclusive development is the overarching objective of development assistance, then, there may be a need to revisit the current allocation of aid to different uses.

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  • Shimeles Abebe & Adeleke Oluwole Salami & Anthony M. Simpasa, 2015. "Working Paper 221 - Employment Effects of Multilateral Development Bank Projects The Case of the African Development Bank," Working Paper Series 2160, African Development Bank.
    • Handle: RePEc:adb:adbwps:2160
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    1. Asongu, Simplice & Odhiambo, Nicholas, 2019. "Foreign Aid Complementarities and Inclusive Human Development in Africa," MPRA Paper 101086, University Library of Munich, Germany.
    2. John Ssozi & Simplice Asongu & Voxi Heinrich Amavilah, 2019. "The effectiveness of development aid for agriculture in Sub-Saharan Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(2), pages 284-305, March.
    3. Ssozi, John & Asongu, Simplice & Amavilah, Voxi, 2017. "Is Aid for Agriculture Effective in Sub-Saharan Africa?," MPRA Paper 83073, University Library of Munich, Germany.
    4. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2020. "Foreign aid volatility and lifelong learning," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 11(4), pages 370-406.
    5. Sithole, Mixo Sweetness & Hlongwane, Nyiko Worship, 2023. "The role of the New Development Bank on Economic growth and Development in the BRICS states," MPRA Paper 119958, University Library of Munich, Germany, revised 26 Jan 2024.
    6. Fumitaka Furuoka, 2017. "Determinants of China's and Japan's Foreign Aid Allocations in Africa," African Development Review, African Development Bank, vol. 29(3), pages 376-388, September.

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