Impact of Official Development Assistance on the Growth of WAEMU Member Countries: Assessment Following the Recommendations of the 2002 Monterrey Conference

Open access

Abstract

This paper evaluates the impact of official development assistance on the growth of WAEMU countries using an econometric approach. This assessment heeds the recommendation of the 2002 Monterrey Conference that diversification of development support resources is needed. The results obtained indicate that the total net public assistance received has a positive and significant impact in the short and long term on the growth of WAEMU countries. By diversifying the development support resources of the zone, the minimum threshold of official development assistance needed to boost the growth of the countries of the zone is 13.5% of GDP per capita.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Adam C.S. and S.A. O'connell. (1997) “Aid Taxation and Development: Analytical Perspectives on Aid Effectiveness in Sub-Saharan Africa” WPS / 975 Center for the Study of African Economies University of Oxford St Cross Building Manor Road Oxford OX13UL

  • Ahmed M.Q. (1992) Foreign Aid Domestic Savings and Economic Growth: The Case of Assemien A. (1994) “Debt and Growth: The Case of Côte d'Ivoire” Economic Policy Analysis Unit of Cires (CAPEC) Working Paper (D.T.) No. 2.

  • Assemien A. (1996) “Policy for the Promotion of National Saving and Investment Financing in Côte d'Ivoire” Economic Policy Analysis Unit of CIRES (CAPEC) Working Document (DT) N ° 28.

  • Baltagi B.H (1995) Econometric Analysis of Panel Data John Wiley & Son New York.

  • Caceres L.R. (1995) “Foreign Resources Domestic Savings and Economic Growth: The Case of Central America” Savings and Development No. 4-XIX pp393-403.

  • Campbell R. (1999) “Foreign Aid Domestic Savings and Economic Growth: Some Evidence From the ECCB Area” Savings and Development No. 3-XXIII pp.225-77.

  • Chenery H.B. and A.M. Strout. (1966) “Foreign Assistance and Economic Development” The American Economic Review Vol. LVI No. 4 pp. 679-733.

  • Cohen M. and J. Pradel. (1993) Econometrics Litec Edition Paris.

  • Griffin K. (1970) “Foreign Capital Domestic Savings and Economic Development” Bulletin of the Oxford University Institute of Economics and Statistics vol.32 pp.99-112.

  • Griffin K. (1973) “The Effect of Aid and Other Resource Transfers on Savings and Growth in Less-Developed Countries: A Comment” Economic Journal Vol.83 pp. 863-66.

  • Gujarati D.N. (1988) Basic Econometrics McGraw-Hill Book Company New York.

  • Gupta L.K. and Mr. A. Islam. (1983) Foreign Capital Savings and Growth D. Reidel Publishing Company Dordrecht Holland.

  • Hsiao C. (1986) “Analysis of Panel Data” Econometric Society Monographs No. 11. Cambridge University Press.

  • Islam A. (1992) “Foreign Aid and Economic Growth: An Economic Study of Bangladesh” Applied Economics Vol. 24 pp. 541-44.

  • Johnston J. (1988) Econometric Methods Tomes 1 and 2 3rd Edition Economica Edition.

  • Khan H.A. and E. Hoshino. (1992) “Impact of Foreign Aid on the Fiscal Behavior of LDC Governments” World Development Vol. 20 No. 10 pp1481-88.

  • Krishnamurty I. (1968) “Savings and Taxation in Developing Countries: An Empirical Study” International Bank for Reconstruction and Development Economic Department Paper No. 23.

  • Levy V. (1984) “The Savings Gap and the Productivity of Foreign Aid to a Developing Economy: Egypt” The Journal of Developing Areas Vol.19 pp. 21-34.

  • Levy V. (1987) “Does Concessionary Aid Lead to Higher Investment Rates in Low-Income Countries?” The Review of Economics and Statistics vol.69 pp152-56.

  • Levy V. (1988) “Aid and Growth in Sub-Saharan Africa: The Recent Experience” The European Economic Review vol.32 pp1777-95.

  • Mavrotas G. and R. Kelly. (2001) Savings Mobilization and Financial Sector Development: The Nexus Savings and Development No. 1 XXV pp33-66

  • Mckinnon R.I. (1964) “Foreign Exchange Constraints in Economic Development and Efficient Aid Allocation” Economic Journal Vol.74 pp388-409.

  • Mosley P. J. Hudson and S. Horrell. (1987) “Aid the Public Sector and the Market in Less Developed Countries” The Economic Journal Vol.97 pp616-641.

  • Papanek G. (1972) “The Effects of Aid and Other Resources Transfers on Savings and Growth in Less Developed Countries” Economic Journal Vol.82 pp934-50.

  • Pesaran M. H. Y. Shin and R. J. Smith (2001) Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics 16 289-326.

  • Rahman M.A. (1984) Foreign Aid and Self-Reliant Growth: the Case for Bangladesh Center for Social Studies Dhaka University.

  • Rana P.B. (1987) “Foreign Capital Exports Savings and Growth in the Asian Region” Savings and Development No. 1 XI pp. 5-27.

  • Reichel R. (1995) “Development Aid Savings and Growth in the 1980s: A Cross Section Analysis” Savings and Development No. 3-XIX pp279-96.

  • Shan J. and F. Sun (1998) Domestic Saving and Foreign Investment in Australia: a Granger Causality Test. International Economic Journal 12 79-87.

  • Romer D. (1997) Advanced Macroeconomics MacGraw-Hill / Ediscience International Paris.

  • Sahoo P.; G. Nataraj and B. Kamaiah. (2001) “Savings and Economic Growth in India: The Long Run Nexus” Savings and Development No. 1-XXV pp67-80.

  • Taslim M.A. and A. Weliwita. (1998) “Investment Saving Aid and Entrepreneurship” unpublished paper.

  • White H. (1992) “The Macroeconomic Impact of Development Aid: A Critical Survey” The Journal of Development Studies Vol.28 No. 2 pp163-240.

  • Weisskopf T.E. (1972) “The Impact of Foreign Capital Inflow on Domestic Savings in Underdeveloped Countries” Journal of International Economics Vol.2 pp.25-38.

  • Younger S.D. (1992) “Aid and the Dutch Disease: Macro-Economic Management When Everybody Loves You” World Development.