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Foreign Aid Complementarities and Inclusive Human Development in Africa

Simplice Asongu () and Nicholas Odhiambo ()

No 19/021, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: This study complements existing literature by assessing how various types of foreign aid complement each other in boosting inclusive human development in Africa. (a) When ‘aid to social infrastructure’ is moderated with other aid types, ‘action on debts’ is substitutive whereas ‘aid to the production sector’, ‘aid for program assistance’ and humanitarian assistance are complementary. (b) ‘Aid to the production sector’ (‘action on debt’) is complementary (substitutive) to ‘aid for economic infrastructure’. (c) Whereas ‘action on debt’ is a substitute to ‘aid to the production sector’, ‘aid for social infrastructure’ and ‘aid for economic infrastructure’ are complementary. (d) ‘Action on debt’ is a substitute for ‘aid to the multi-sector’. (e) While ‘aid for social infrastructure’ and ‘action on debt’ are substitutive to ‘aid for program assistance’; humanitarian assistance is complementary. (f) The following are substitutes to ‘action on debt’: ‘aid for economic infrastructure’, ‘aid to the production sector’, ‘aid to the multi-sector’ and ‘programme assistance’. (g) ‘Aid for social infrastructure’ and ‘programme assistance’ are complementary to humanitarian assistance. The findings reveal various patterns that inform policy makers on the relevance of sequencing aid types to enhance inclusive development. Future research should focus on country-specific studies.

Keywords: Foreign Aid; Inclusive Development; Africa (search for similar items in EconPapers)
JEL-codes: B20 F35 F50 O10 O55 (search for similar items in EconPapers)
Date: 2019-01
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Forthcoming: Journal of Social Service Research

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http://www.afridev.org/RePEc/agd/agd-wpaper/Foreig ... opment-in-Africa.pdf Revised version, 2019 (application/pdf)

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Working Paper: Foreign Aid Complementarities and Inclusive Human Development in Africa (2019) Downloads
Working Paper: Foreign Aid Complementarities and Inclusive Human Development in Africa (2019) Downloads
Working Paper: Foreign aid complementarities and inclusive human development in Africa (2019) Downloads
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