Abstract
The effect of international aid on the economic development of recipient countries has not been conclusive, nor have aid effectiveness metrics been simple and robust. This paper scrutinizes the nexus of official development assistance (ODA) and inclusive development. The data covers 34 African countries for the period 1991 to 2018. The simple OLS regression shows the negative association of ODA and inclusive development, as has been claimed by numerous researchers. However, it is statistically proved that the negative association is due to an omitted variable. Therefore, this paper's unique addition is that it uses the instrumental variable two-stage linear square (2SLS) regression model and claims ODA is a statistically significant positive determinant of inclusive development.
Keywords:
Jel Code:
Article Details
- Year: 2022
- Volume: 43
- Issue: 4
- Pages: 193 - 226
- Accepted: 22.11.2022
-
DOI:
https://doi.org/10.5281/zenodo.16894838 -
Full Text (PDF)
2 Views 2 Downloads
How to Cite?
Mesfin Mulugeta Woldegiorgis (2022). The Effect of Official Development Assistance on Inclusive Development: Evidence for Sub-Sahara Africa. Journal of Economic Cooperation and Development, 43(4), 193-226. https://doi.org/10.5281/zenodo.16894838
