Authors
Emmanuel Kumi, Muazu Ibrahim, Thomas Yeboah
Publication date
2017/10/2
Journal
Journal of African Business
Volume
18
Issue
4
Pages
435-456
Publisher
Routledge
Description
This article examines the impact of aid and its volatility on sectoral growth by relying on panel dataset of 37 sub-Saharan African (SSA) countries for the period 1983–2014. Findings from the system-generalized methods of moments show that, while foreign aid significantly drives sectoral growth, aid volatility deteriorates sectoral value additions impacting heavily on non-tradable sectors with no apparent effect on the agricultural sector. The deleterious effect of aid volatility on sectoral value additions in SSA is weakened by a well-developed financial system with significant impact on the tradable sector. Evidently, development of domestic financial markets enhances aid effectiveness.
Scholar articles
E Kumi, M Ibrahim, T Yeboah - Journal of African Business, 2017