NDLI: Foreign Aid, Instability and Governance in Africa

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Foreign Aid, Instability and Governance in Africa

Content Provider	Scilit
Author	Asongu, Simplice Nnanna, Joseph
Copyright Year	2019
Description	Journal: SSRN Electronic Journal This study contributes to the attendant literature by bundling governance dynamics and focusing on foreign aid instability instead of foreign aid. We assess the role of foreign aid instability on governance dynamics in fifty three African countries for the period 1996-2010. An autoregressive endogeneity-robust Generalized Method of Moments is employed. Instabilities are measured in terms of variance of the errors and standard deviations. Three main aid indicators are used, namely: total aid, aid from multilateral donors and bilateral aid. Principal Component Analysis is used to bundle governance indicators, namely: political governance (voice & accountability and political stability/no violence), economic governance (regulation quality and government effectiveness), institutional governance (rule of law and corruption-control) and general governance (political, economic and institutional governance). Our findings show that foreign aid instability increases governance standards, especially political and general governance. Policy implications are discussed.
Related Links	http://publications.ceredec.org/RePEc/aby/aby-wpaper/Foreign-aid-instability-and-governance-in-Africa.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3380449
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.3380449
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2019-04-30
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal Development Studies Foreign Aid
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

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