L'Aide Publique au Développement et la croissance économique dans l'UEMOA: Entre efficacité et dépendance structurelle

Official Development Assistance and Economic Growth in WAEMU: Navigating Between Effectiveness and Structural Dependence

Seydou Sow

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the impact of Official Development Assistance (ODA) on economic growth in the West African Economic and Monetary Union (WAEMU) over the period 2000-2022. Using a FMOLS econometric approach applied to panel data covering the eight member countries, the analysis reveals a complex and conditional relationship between development aid and economic growth. The results partially confirm the positive effect of ODA on growth, but demonstrate that this effectiveness crucially depends on specific internal conditions, particularly the level of domestic savings and governance quality. The study highlights a significant leverage effect between external and internal resources, with the ODA-savings interaction being positive and statistically significant. Regarding aid dependency, the analysis reveals the existence of a non-linear inverted U-shaped relationship, confirming the existence of an optimal threshold beyond which dependency becomes counterproductive for growth. Gross Fixed Capital Formation emerges as the most robust factor across all models, confirming the central role of domestic investment. These results advocate for a strategic reorientation of aid policies towards strengthening internal capacities, improving governance, and diversifying development financing sources from a perspective of economic sovereignty and endogenous growth.

Keywords: Official development assistance; Economic growth; WAEMU; Governance; External dependence; Conditional effect (search for similar items in EconPapers)
JEL-codes: F35 O11 O19 O55 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-fdg
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