The Impact of Aid and Public Investment Volatility on Economic Growth in Sub-Saharan Africa

Malimu Museru, Francois Toerien and Sean Gossel

World Development, 2014, vol. 57, issue C, 138-147

Abstract: This study investigates the effects of aid inflows and the volatility of public investment on economic growth in 26 Sub-Saharan African countries over the period from 1992 to 2011. Three volatility variables comprising aid, government revenue, and public investment are incorporated into an aid-growth model to test for their effect on economic growth. Using the Generalized Method of Moments (GMM) technique and averaged data for five four-year sub-periods, we show that although foreign aid has a positive impact on growth once potential endogeneity has been accounted for, aid effectiveness may have been eroded by volatility in public investment.

Keywords: aid; economic growth; public investment; Sub-Saharan Africa; volatility (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X13002854
Full text for ScienceDirect subscribers only

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:eee:wdevel:v:57:y:2014:i:c:p:138-147

DOI: 10.1016/j.worlddev.2013.12.001

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().