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Foreign Aid’s Effect on Economic Growth, New Results from WAEMU’s Countries

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DOI: 10.4236/tel.2015.53049    3,167 Downloads   3,868 Views   Citations

ABSTRACT

This study investigates whether foreign aid (AID) has a significant influence on economic growth in WAEMU’s (West African Economic and Monetary Union) countries. We use two (2) types of aid data: aggregate aid and disaggregate aid (aid in education, aid in agriculture, aid in trade policies and regulations and humanitarian aid) to run two (2) different regressions. Both the within-dimension and between-dimension estimators reveal that in the long run, the effect of AID on economic growth is heterogeneous across sectors and aid in agriculture, aid in trade policies and regulations as well as aid in education encourages economic growth.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Aboubacar, B. , Xu, D. and Ousseini, A. (2015) Foreign Aid’s Effect on Economic Growth, New Results from WAEMU’s Countries. Theoretical Economics Letters, 5, 425-430. doi: 10.4236/tel.2015.53049.

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