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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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    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Foreign Aid Complementarities and Inclusive Human Development in Africa," CEREDEC Working Papers 19/021, Centre de Recherche pour le Développement Economique (CEREDEC).
    3. Joseph I. Uduji & Elda N. Okolo-Obasi & Simplice A. Asongu, 2020. "Does Growth Enhancement Support Scheme (GESS) Contribute to Youth Development in Informal Farm Entrepreneurship? Evidence from Rural Communities in Nigeria," Research Africa Network Working Papers 20/060, Research Africa Network (RAN).
    4. Tii N. Nchofoung & Simplice A. Asongu & Arsène A. Njamen Kengdo & Elvis D. Achuo, 2021. "Linear and non-linear effects of infrastructures on inclusive human development in Africa," Working Papers of the African Governance and Development Institute. 21/039, African Governance and Development Institute..
    5. Uduji, Joseph & Okolo-Obasi, Elda & Asongu, Simplice, 2020. "Analysis of Farmers’ Food Price Volatility and Nigeria’s Growth Enhancement Support Scheme," MPRA Paper 107241, University Library of Munich, Germany.
    6. Joseph Ikechukwu Uduji & Elda Nduka Okolo-Obasi & Simplice Asongu, 2020. "Women’s participation in the offshore and inshore fisheries entrepreneurship: The role of CSR in Nigeria’s oil coastal communities," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 14(2), pages 247-275, April.
    7. Simplice A. Asongu, 2021. "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. 12(3), pages 1367-1398, September.
    8. Simplice Asongu & Joseph Nnanna, 2020. "Inclusive human development in sub-Saharan Africa," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 14(2), pages 183-200, April.
    9. Adeabah, David & Asongu, Simplice & Andoh, Charles, 2021. "Remittances, ICT and pension income coverage: The international evidence," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    10. 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.
    11. Uduji, Joseph Ikechukwu & Okolo-Obasi, Elda Nduka & Asongu, Simplice A., 2021. "Oil extraction in Nigeria's Ogoniland: The role of corporate social responsibility in averting a resurgence of violence," Resources Policy, Elsevier, vol. 70(C).
    12. Uduji, Joseph & Okolo-Obasi, Elda & Asongu, Simplice, 2020. "Sustainable Peace building and Development in Nigeria’s Post-Amnesty Programme: the Role of Corporate Social Responsibility in Oil Host Communities," MPRA Paper 103228, University Library of Munich, Germany.
    13. 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.

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    More about this item

    Keywords

    Foreign investment; Remittances; Foreign aid; Inclusive development; Africa;
    All these keywords.

    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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