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Quel volume d’aide internationale pour la croissance dans l’UEMOA ?
[What amount of foreign aid for economic growth in WAEMU?]

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  • BAYALE, Nimonka

Abstract

The main purpose of this chapter is to analyze threshold effects of Official Development Assistance on economic growth in WAEMU zone countries. To achieve this, the study is based on OECD and WDI data covering the period 1980-2015 and used Hansen’s Panel Threshold Regression model to “bootstrap” aid threshold above which its effectiveness is effective. The evidence strongly supports the view that the relationship between aid and economic growth is non-linear with a unique threshold which is 12.74% GDP. Above this value, the marginal effect of aid is 0.69 point. One of the main contributions of this paper is to show that WAEMU countries need investments that could be covered by the foreign aid. This later one should be considered just as a complementary resource. Thus, WEAMU countries should continue to strengthen their efforts in internal resource mobilization in order to fulfil this need.

Suggested Citation

  • BAYALE, Nimonka, 2018. "Quel volume d’aide internationale pour la croissance dans l’UEMOA ? [What amount of foreign aid for economic growth in WAEMU?]," MPRA Paper 88886, University Library of Munich, Germany, revised 07 Sep 2018.
    • Handle: RePEc:pra:mprapa:88886
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    More about this item

    Keywords

    Foreign Aid; Panel Threshold Regression; Economic Growth; WAEMU zone;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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