Aid, Domestic Governance, and Agricultural Growth in Developing Countries

Ferguson Korbla Gidiglo, Francis Yao Srofenyoh, Kofi Aaron Aboa-Offei Agyei-Henaku, Charlotte Badu-Prah, Akua Agyeiwaa-Afrane and Justice Gameli Djokoto

AGRIS on-line Papers in Economics and Informatics, 2024, vol. 16, issue 01

Abstract: This study departed from other agricultural aid-growth studies by measuring growth as the annual growth rate of agricultural value added and accounting for the moderating role of governance on the aid-growth effect. Using data on a panel of 117 developing countries from 1996 to 2020, aid negatively influenced agricultural growth. Governance had a negative but insignificant independent effect on growth. However, the interaction of governance with aid turned the aid-growth effect from a significant negative to a statistically insignificantly positive effect. Since the low level of governance produced the positive interaction effect, of the aid-growth relationship, escalation of (good) governance could produce a strong effect.

Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aolpei:348964

DOI: 10.22004/ag.econ.348964

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