TITLE:
Foreign Aid’s Effect on Economic Growth, New Results from WAEMU’s Countries
AUTHORS:
Badamassi Aboubacar, Deyi Xu, Amadou Maiga Ousseini
KEYWORDS:
Foreign Aid, WAEMU, Within-Dimension Estimators, Between-Dimension Estimators
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.3,
June
29,
2015
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.