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Thresholds of External Flows for Inclusive Human Development in Sub-Saharan Africa

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  • Simplice A. Asongu

    () (Yaoundé/Cameroon)

  • Joseph I. Uduji

    () (University of Nigeria, Nsukka, Nigeria)

  • Elda N. Okolo-Obasi

    () (University of Nigeria, Nsukka, Nigeria)

Abstract

This research investigates the incidence of enhancing external flows on inclusive human development in a panel of 48 countries in sub-Saharan Africa. It complements the literature by examining the relevance of enhancing three types of external flows, namely: development assistance, foreign investment and remittances. Ordinary Least Squares, Tobit, Fixed effects, Generalised Method of Moments and Quantile regressions are used as empirical strategies. The following main results are apparent: (i) between 60 and 150 (% of GDP) is the threshold of foreign aid; (ii) 33.333 (% of GDP) is the foreign investment threshold and (iii) 25 (% of GDP) is the critical mass of remittances. At the established critical masses or thresholds, external flows start having positive effects on inclusive human development. Countries characterized by inclusive development levels that are low need more investment in foreign aid for inclusive human development compared to their counterparts characterized by inclusive human development levels that are high.

Suggested Citation

  • Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2019. "Thresholds of External Flows for Inclusive Human Development in Sub-Saharan Africa," CEREDEC Working Papers 19/045, Centre de Recherche pour le Développement Economique (CEREDEC).
  • Handle: RePEc:aby:wpaper:19/045
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    Cited by:

    1. Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2019. "Thresholds of External Flows for Inclusive Human Development in Sub-Saharan Africa," MPRA Paper 101521, University Library of Munich, Germany.
    2. Simplice A. Asongu & Joseph Nnanna, 2020. "Inclusive Human Development in Sub-Saharan Africa," Working Papers 20/014, European Xtramile Centre of African Studies (EXCAS).
    3. Asongu, Simplice A & Odhiambo, Nicholas Mbaya, 2019. "Foreign aid complementarities and inclusive human development in Africa," Working Papers 25397, University of South Africa, Department of Economics.
    4. Simplice A. Asongu, 2020. "The Effects of Mobile Phone Technology, Knowledge Creation and Diffusion on Inclusive Human Development in Sub-Saharan Africa," Research Africa Network Working Papers 20/033, Research Africa Network (RAN).
    5. Simplice A. Asongu, 0. "The Effects of Mobile Phone Technology, Knowledge Creation and Diffusion on Inclusive Human Development in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 0, pages 1-32.

    More about this item

    Keywords

    Foreign investment; Remittances; Foreign aid; Inclusive development; Africa;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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