Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93711
Authors: 
Mallaye, Douzounet
Urbain, Yogo Thierry
Year of Publication: 
2013
Series/Report no.: 
WIDER Working Paper 2013/103
Abstract: 
This study addresses the macroeconomic effect of foreign aid on the factors of growth. Specifically, we examine the effects of foreign aid on capital investment (human capital, physical capital) in sub-Saharan Africa. Our methodological approach evaluates the effect of disaggregate aid (aid for infrastructure and aid for education) on capital investment. To test our postulate, we make use of panel data of 37 sub-Saharan African states over the period 2000-10. The results of the regressions show that foreign aid positively and significantly affected the physical capital accumulation in the countries under review. The effect of aid for infrastructure is less important in post-conflict environments than in stable environments. Concerning the impacts of aid on human capital, we find that aid enhances enrolment in primary education. We also note that there is no statistical difference between stable countries and post-conflict countries in terms of the effectiveness of aid for education.
Subjects: 
foreign aid
physical capital
human capital
panel data
Africa
JEL: 
C23
F35
H54
J24
Document Type: 
Working Paper

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