Can Aid Generate Growth in Africa?
The paper discusses the impact of foreign aid on economic growth in Africa. After brief discussion about growth determinants it goes on to review the available evidence about the impact of aid on African economic growth. Evidence from both cross-country regressions and country studies is considered, and issues relating to economic policy, governance, ownership, and sustainability are identified as particularly important. Given those insights, some general conclusions are drawn as to what type of aid should be given. However, the main focus is on a discussion about how to structure the aid relationship so that it encourages good governance, which is deemed essential for long-term growth. Donors should delegate more responsibility to the recipients, while at the same time creating an incentive structure for good performance. This would include among other things a shift towards ex post conditionality and aid allocation according to performance. Given the improvements in the economic policy environment in Africa, the prospects for effective aid look more promising than they have for a long time.
|Date of creation:||15 May 1998|
|Publication status:||Published in Foreign Aid: New Perspectives, Gupta, Kanhaya L. (eds.), 1999, chapter Can Aid Generate Economic Growth in Africa?, Kluwer Academic Publishers, Boston.|
|Contact details of provider:|| Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden|
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Collier & Jan Willem Gunning, 1997.
"Explaining African economic performance,"
CSAE Working Paper Series
1997-02.2, Centre for the Study of African Economies, University of Oxford.
- William Easterly & Ross Levine, 1997.
"Africa's Growth Tragedy: Policies and Ethnic Divisions,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 112(4), pages 1203-1250.
- Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
- David Dollar & Craig Burnside, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
- Claessens, Stijn & Naude, David, 1993. "Recent estimates of capital flight," Policy Research Working Paper Series 1186, The World Bank.
- Mosley, Paul & Hudson, John & Horrell, Sara, 1987. "Aid, the Public Sector and the Market in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 97(387), pages 616-641, September.
- repec:fth:oxesaf:97-2.1 is not listed on IDEAS
- Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
- Adam, Christopher S. & O'Connell, Stephen A., 1998. "Aid, taxation, and development: analytical perspectives on aid effectiveness in Sub-Saharan Africa," Policy Research Working Paper Series 1885, The World Bank.
- Bigsten, Arne & Moene, Karl Ove, 1996. "Growth and Rent Dissipation: The Case of Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 5(2), pages 177-198, June.
- Christopher S. Adam & Stephen O'Connell, 1997. "Aid, taxation and development: analytical perspectives on aid effectiveness in sub-Saharan Africa," CSAE Working Paper Series 1997-05, Centre for the Study of African Economies, University of Oxford.
When requesting a correction, please mention this item's handle: RePEc:hhs:gunwpe:0003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Andersson)
If references are entirely missing, you can add them using this form.