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Foreign aid complementarities and inclusive human development in Africa

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  • Asongu, Simplice A
  • Odhiambo, Nicholas Mbaya

Abstract

This study complements existing literature by assessing how various types of foreign aidcomplement each other in boosting inclusive human development in Africa. (a) When ?aid to socialinfrastructure? is moderated with other aid types, ?action on debts? is substitutive whereas ?aid tothe production sector?, ?aid for program assistance? and humanitarian assistance arecomplementary. (b) ?Aid to the production sector? (?action on debt?) is complementary(substitutive) to ?aid for economic infrastructure?. (c) Whereas ?action on debt? is a substitute to?aid to the production sector?, ?aid for social infrastructure? and ?aid for economic infrastructure?are complementary. (d) ?Action on debt? is a substitute for ?aid to the multi-sector?. (e) While ?aidfor social infrastructure? and ?action on debt? are substitutive to ?aid for program assistance?;humanitarian assistance is complementary. (f) The following are substitutes to ?action on debt?:?aid for economic infrastructure?, ?aid to the production sector?, ?aid to the multi-sector? and?programme assistance?. (g) ?Aid for social infrastructure? and ?programme assistance? arecomplementary to humanitarian assistance. The findings reveal various patterns that inform policymakers on the relevance of sequencing aid types to enhance inclusive development. Futureresearch should focus on country-specific studies.

Suggested Citation

  • 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.
    • Handle: RePEc:uza:wpaper:25397
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    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance Policy Thresholds for Economic Growth in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 672-689, July.
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(1), pages 71-103, February.
    3. Giyoh G. Nginyu & Dobdinga C. Fonchamnyo & Boniface N. Epo & Simplice A. Asongu, 2023. "The effects of institutional quality and biocapacity on inclusive human development in Sub-Saharan Africa," Working Papers 23/044, European Xtramile Centre of African Studies (EXCAS).

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    More about this item

    Keywords

    Foreign Aid; Inclusive Development; Africa;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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