Theoretical Economics Letters

Volume 5, Issue 3 (June 2015)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 1.34  Citations  

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

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DOI: 10.4236/tel.2015.53049    4,001 Downloads   5,781 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.

Share and Cite:

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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