Aid, Aid Volatility and Sectoral Growth in Sub-Saharan Africa: Does Finance Matter?
Emmanuel KumiCentre for Development Studies, University of Bath, Bath, UKMuazu IbrahimSchool of Business and Law, Department of Banking and Finance, University for Development Studies, Wa, GhanaThomas YeboahResearch, Projects and Innovation, College of Distance Education, University of Cape Coast, Cape Coast, Ghana
2017en
ABI
Annotatsiya
This article examines the impact of aid and its volatility on sectoral growth by relying on panel dataset of 37 sub-Saharan African (SSA) countries for the period 1983–2014. Findings from the system-generalized methods of moments show that, while foreign aid significantly drives sectoral growth, aid volatility deteriorates sectoral value additions impacting heavily on non-tradable sectors with no apparent effect on the agricultural sector. The deleterious effect of aid volatility on sectoral value additions in SSA is weakened by a well-developed financial system with significant impact on the tradable sector. Evidently, development of domestic financial markets enhances aid effectiveness.
Hali tarjima qilinmagan
Identifikatorlar
Iqtiboslar va manbalar
4 ta iqtibos0 ta foydalanilgan manba