Effect of Foreign Aid on Human Development in Sub-Saharan Africa:A System GMM Approach

Sakiru Oladele Akinbode and Tobi Michael Bolarinwa
Additional contact information
Sakiru Oladele Akinbode: Federal University of Agriculture, Abeokuta, Nigeria
Tobi Michael Bolarinwa: Federal University of Agriculture, Abeokuta, Nigeria

South-Eastern Europe Journal of Economics, 2020, vol. 18, issue 1, 19-38

Abstract: Using data for 47 SSA countries from 2000 to 2016, the study examined the effect of foreign aid on human development in SSA by employing the System-GMM approach, which is specifically applicable to the present case. Results revealed that aid did not affect human development in SSA, whereas, corruption was found to reduce HDI, while trade openness improved it. Validity of results was confirmed by the Arellano-Bond test for autocorrelation in the disturbance term and the Hansen and Sargan tests for the validity of instrumental variables. The study recommended effective framework for utilization of foreign aid and reduction of corruption.

Keywords: Human Development; Foreign Aid; Sub-Saharan Africa (SSA) (search for similar items in EconPapers)
JEL-codes: O11 O15 O55 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.asecu.gr/Seeje/issue34/issue34-akinbode-bolarinwa.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:seb:journl:v:18:y:2020:i:1:p:19-38

Access Statistics for this article

More articles in South-Eastern Europe Journal of Economics from Association of Economic Universities of South and Eastern Europe and the Black Sea Region Contact information at EDIRC.
Bibliographic data for series maintained by Ms. Melina Petromelidou ().