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Growth Impact of Aid Quantity and Quality in Africa

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Foreign Capital Flows and Economic Development in Africa

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Abstract

This chapter employs parametric and nonparametric methods to examine the impact of aid (quantity and quality) on growth in the former British and French colonies of Africa over the period 1975–2010. The quantity of aid is proxied by a quadratic term of the aid variable while the quality, by different source of aid. Results indicate that foreign aid exhibits diminishing returns when a countries’ legal origin is taken into account. Bilateral aid is found to be effective only in the former British colonies, while multilateral aid generates growth regardless of legal origin but only above a certain threshold. Moreover, good governance is shown to stimulate growth and improve aid effectiveness.

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Author information

Authors and Affiliations

  1. Pennsylvania State University, DuBois, PA, USA

    Evelyn Wamboye

  2. Texas Christian University, Fort Worth, TX, USA

    Kiril Tochkov

Authors
  1. Evelyn Wamboye
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  2. Kiril Tochkov
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Editor information

Editors and Affiliations

  1. Pennsylvania State University, DuBois, PA, USA

    Evelyn Wamboye

  2. Birmingham-Southern College, Birmingham, Alabama, USA

    Esubalew Alehegn Tiruneh

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Wamboye, E., Tochkov, K. (2017). Growth Impact of Aid Quantity and Quality in Africa. In: Wamboye, E., Tiruneh, E. (eds) Foreign Capital Flows and Economic Development in Africa. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-53496-5_15

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  • DOI: https://doi.org/10.1057/978-1-137-53496-5_15

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  • Publisher Name: Palgrave Macmillan, New York

  • Print ISBN: 978-1-137-53495-8

  • Online ISBN: 978-1-137-53496-5

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