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

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  • Asongu, Simplice
  • Uduji, Joseph
  • Okolo-Obasi, Elda

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

  • 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.
    • Handle: RePEc:pra:mprapa:101521
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    Cited by:

    1. Tii N. Nchofoung & Simplice A. Asongu & Arsène A. Njamen Kengdo & Elvis D. Achuo, 2022. "Linear and non‐linear effects of infrastructures on inclusive human development in Africa," African Development Review, African Development Bank, vol. 34(1), pages 81-96, March.
    2. Uduji, Joseph & Okolo-Obasi, Elda & Asongu, Simplice, 2021. "Does Corporate Social Responsibility Initiative Dissuade the Increasing Electoral Violence in sub-Saharan Africa? Evidence from Nigeria’s Oil Producing Region," MPRA Paper 110756, University Library of Munich, Germany.
    3. 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.
    4. Joseph I. Uduji & Elda N. Okolo-Obasi, 2022. "Promoting Gender – Equitable Agricultural Value Chains: the Role of Corporate Social Responsibility in Nigeria’s Niger Delta," Working Papers of the African Governance and Development Institute. 22/087, African Governance and Development Institute..
    5. 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 Limited, vol. 14(2), pages 183-200, May.
    6. Joseph I. Uduji & Elda Nduka Okolo-Obasi & Simplice Anutechia Asongu, 2021. "Analysis of farmers’ food price volatility and Nigeria’s growth enhancement support scheme," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 13(4), pages 463-478, June.
    7. Joseph I. Uduji & Elda N. Okolo-Obasi, 2022. "Promoting Gender – Equitable Agricultural Value Chains: the Role of Corporate Social Responsibility in Nigeria’s Niger Delta," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 22/021, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    8. Joseph Ikechukwu Uduji & Elda Nduka Okolo-Obasi & Simplice Anutechia Asongu, 2021. "Does growth enhancement support scheme (GESS) contribute to youth development in informal farm entrepreneurship? Evidence from rural communities in Nigeria," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 15(3), pages 451-476, February.
    9. 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.
    10. 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).
    11. Waliu O. Shittu & Gazi M. Hassan & Frank G. Scrimgeour, 2023. "The Impact of COVID-19 on the Relationship between Foreign Direct Investment and Sustainable Development," Working Papers in Economics 23/08, University of Waikato.
    12. 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.
    13. 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).
    14. Uduji, Joseph & Okolo-Obasi, Elda & Asongu, Simplice, 2020. "Women’s Participation in the Offshore and Inshore Fisheries Entrepreneurship: the Role of CSR in Nigeria’s Oil Coastal Communities," MPRA Paper 103141, University Library of Munich, Germany.
    15. Joseph I. Uduji & Elda N. Okolo-Obasi & Simplice A. Asongu, 2020. "Sustainable Peace building and Development in Nigeria’s Post-Amnesty Programme: the Role of Corporate Social Responsibility in Oil Host Communities," Working Papers of the African Governance and Development Institute. 20/026, African Governance and Development Institute..
    16. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and poverty in Sub-Saharan African countries: the role of host absorptive capacity," Economic Development and Well-being Research Group Working Paper Series edwrg-04-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    17. Arogundade, Sodiq & Biyase, Mduduzi & Eita, Joel H., 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries: Domestic Conditions Matter," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 74(4), pages 463-498.
    18. Joseph I. Uduji & Elda N. Okolo-Obasi, 2022. "Promoting Gender – Equitable Agricultural Value Chains: the Role of Corporate Social Responsibility in Nigeria’s Niger Delta," Working Papers 22/087, European Xtramile Centre of African Studies (EXCAS).

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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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