Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205015 
Year of Publication: 
2019
Series/Report no.: 
AGDI Working Paper No. WP/19/045
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This research investigates the incidence of enhancing external flows on inclusive human development in a panel of 48 countries in sub-Saharan Africa. It complements the literature by examining the relevance of enhancing three types of external flows, namely: development assistance, foreign investment and remittances. Ordinary Least Squares, Tobit, Fixed effects, Generalised Method of Moments and Quantile regressions are used as empirical strategies. The following main results are apparent: (i) between 60 and 150 (% of GDP) is the threshold of foreign aid; (ii) 33.333 (% of GDP) is the foreign investment threshold and (iii) 25 (% of GDP) is the critical mass of remittances. At the established critical masses or thresholds, external flows start having positive effects on inclusive human development. Countries characterized by inclusive development levels that are low need more investment in foreign aid for inclusive human development compared to their counterparts characterized by inclusive human development levels that are high.
Subjects: 
Foreign investment
Remittances
Foreign aid
Inclusive development
Africa
JEL: 
F21
F24
F35
I30
O55
Document Type: 
Working Paper

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