ODA effectiveness and inclusiveness: The long run dynamics

PACIFIQUE, MONGONGO DOSA (2016) ODA effectiveness and inclusiveness: The long run dynamics. In: Fourth International Conference on Advances in Social Science, Economics and Management Study - SEM 2016, 17 - 18 March, 2016, Birmingham City University, Birmingham, UNITED KINGDOM.

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While ODA mostly funds the fundamental rather than the proximate determinants of growth; its economic effectiveness is often denied using short run empirical findings. Considering this inappropriate, long term reassessments are now conducted. However, they still consider ODA and growth as homogeneous. Subsequently, these reassessments fail to capture specific nexuses between their respective components. Drawing on co-integration features of SSA data, this paper fills that gap. Unlike in most short run studies, the estimation results show that both aid-grants and aid-loans positively affect the overall growth with a higher magnitude assigned to aid-loans. More importantly, when shifting focus from the overall to the inequality adjusted growth, both components perform much better. However, while the annual adjustment of deviations from this long run equilibrium is 10% for the inequality adjusted growth, it is only 0.02% for the impact on the overall growth. This spells out why most short run estimations end up with opposite results.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: sub-Saharan Africa, growth, aid-grants,aid-loans, poverty reduction
Depositing User: Mr. John Steve
Date Deposited: 25 Mar 2019 12:09
Last Modified: 25 Mar 2019 12:09
URI: http://publications.theired.org/id/eprint/862

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