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External aid behavior in the recipient economy: A probit regression for Africa

Author

Listed:
  • Adediyan Aderopo Raphael

    (Economics Department, Faculty of Social Sciences, University of Benin, Benin City, Nigeria)

  • Ehisuoria Oseremen ThankGod

    (Economics Department, Faculty of Social Sciences, University of Benin, Benin City, Nigeria)

Abstract

Aim/purpose – External aid allocation by the donors in recent years has been fraught with instability and volatility. This has a negative consequence on the recipient economies particularly those that are highly aid-dependent. A good solution to the problem requires much understanding of factors influencing the behavior of external aid in the respective recipient economy. In this study, the focus was on analyzing two economic factors uncommonly discussed in the empirical literature – the influence of the degree of economic freedom and external debt burden on aid allocation, with emphasis on African economy.

Suggested Citation

  • Adediyan Aderopo Raphael & Ehisuoria Oseremen ThankGod, 2022. "External aid behavior in the recipient economy: A probit regression for Africa," Journal of Economics and Management, Sciendo, vol. 44(1), pages 1-18, January.
    • Handle: RePEc:vrs:jecman:v:44:y:2022:i:1:p:1-18:n:4
    DOI: 10.22367/jem.2022.44.01
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    References listed on IDEAS

    as
    1. Ozgur Kaya & Ilker Kaya & Lewell Gunter, 2012. "Development Aid to Agriculture and Economic Growth," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 230-242, May.
    2. Liu, Xiangbo & Fan, Hua & Chao, Chi-Chur & Yu, Eden S.H., 2019. "Foreign aid, human capital acquisition and educated Unemployment:Fish or fishing," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 1-8.
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    More about this item

    Keywords

    external aid; economic freedom; external debt burden; probit regression;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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