Examining the interactive growth effect of development aid and institutional quality in Sub-Saharan Africa

Balcilar M., Tokar B., Godwin O.

Journal of Development Effectiveness, cilt.12, sa.4, ss.361-376, 2020 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 12 Sayı: 4
  • Basım Tarihi: 2020
  • Doi Numarası: 10.1080/19439342.2020.1796759
  • Dergi Adı: Journal of Development Effectiveness
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Business Source Elite, Business Source Premier, EconLit, Geobase
  • Sayfa Sayıları: ss.361-376
  • Anahtar Kelimeler: Economic Growth, institutions, official Development Assistance, panel GMM, sub-Saharan Africa
  • İstanbul Ticaret Üniversitesi Adresli: Hayır

Özet

This study analyses the interconnectivity of growth, aid and institutions in Sub-Saharan Africa based on annual data for a panel of 39 nations from 1996-2017. The hypothesis that the growth impact of aid and institutions could be interactive was examined. The results indicate that aid has a direct positive and an indirect negative growth impact through its interaction with domestic institutions. The synergistic growth impact of aid and institutions is found to be substitutive rather than complementary. This substitutive effect is most pronounced in Western Africa, followed by Eastern Africa, then Southern Africa, and least pronounced in Central Africa.