Economics at your fingertips  

The Devil is in the Details: On the Robust Determinants of Development Aid in G5 Sahel Countries

Nimonka Bayale () and Brigitte Kanga Kouassi ()
Additional contact information
Nimonka Bayale: Economic Studies and Regional Integration Directorate
Brigitte Kanga Kouassi: University of Kara

Comparative Economic Studies, 2022, vol. 64, issue 4, No 4, 646-680

Abstract: Abstract This paper introduces model uncertainty into the empirical study on the determinants of development aid at the regional level. This is done by adopting a panel Bayesian model averaging approach applied on the data of G5 Sahel countries, spanning the period 1980–2018. Our results suggest that among the regressors considered, those reflecting terrorist attacks, trade stakes including military expenditure, socioeconomic prospects and institutional conditions tend to receive high posterior inclusion probabilities. Then, the study explores the relationship between these regressors and foreign aid by employing the fully modified ordinary least squares (FMOLS), the continuously updated fully modified (CUP-FM), the dynamic ordinary least squares (DOLS) long-run estimators and the Dumitrescu and Hurlin’s (2012) panel causality test. Results highlight three concerns that may justify aid flows toward G5 Sahel countries: (a) peace and security purposes, (b) economic interest of donors and (c) recipient economic needs. The paper recommends that the Sahel countries should strengthen international cooperation for security and peace in compliance with the goal 16 of the 2030 Agenda for sustainable development of the United Nations (UN) and the goal 13 of the African Union’s (AU) Agenda 2063.

Keywords: Bayesian model averaging; Foreign aid; Instability; Security and Peace; G5 Sahel (search for similar items in EconPapers)
JEL-codes: C11 F35 F51 H56 P26 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

DOI: 10.1057/s41294-021-00182-z

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2023-01-03
Handle: RePEc:pal:compes:v:64:y:2022:i:4:d:10.1057_s41294-021-00182-z