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The Impact of Foreign Aid on Economic Growth in ECOWAS Countries: a Simultaneous-Equation Model

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  • Patricia A. Adamu

Abstract

This paper investigates the impact of foreign aid on economic growth in member countries of the Economic Community of West African States using panel data for 1990-2009 and a three equation simultaneous-equations model. The effect of foreign aid on economic growth among these ECOWAS countries was found to be positive and strong. Other important drivers of economic growth include interest rate, foreign direct investment, and the level of international reserves.

Suggested Citation

  • Patricia A. Adamu, 2013. "The Impact of Foreign Aid on Economic Growth in ECOWAS Countries: a Simultaneous-Equation Model," WIDER Working Paper Series wp-2013-143, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2013-143
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    File URL: https://www.wider.unu.edu/sites/default/files/WP2013-143.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Ranjan Kumar Dash & Deepa Jitendra Gupta & Tarun Khandelwal, 2024. "Revisited the role of foreign aid in capital formation: experience of South Asian countries," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    3. Workneh, Migbaru Alamirew, 2018. "Poverty and unemployment in Spain during the 2008's financial crises," MPRA Paper 92145, University Library of Munich, Germany.
    4. Olawumi Dele Awolusi, 2022. "Education and Economic Growth in the Economic Community of West African States (ECOWAS)," Journal of Education and Vocational Research, AMH International, vol. 13(1), pages 6-20.
    5. Arsalan, Rahmatullah, 2019. "Foreign Aid and Economic Development A study of Foreign Aid and Its Effects and Relationship with Per Capita Income of Afghanistan," MPRA Paper 96136, University Library of Munich, Germany, revised Sep 2019.
    6. Sloboda, Brian W. & Sissoko, Yaya, 2020. "Determinants of Economic Growth in ECOWAS Countries: An Empirical Investigation," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2), July.

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