Foreign Aid Complementarities and Inclusive Human Development in Africa

Forthcoming in Journal of Social Service Research. DOI:10.1080/01488376.2019.1612821

A G D I Working Paper WP/19/021

31 Pages Posted: 23 May 2019

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Nicholas Odhiambo

University of South Africa - Department of Economics

Date Written: January 23, 2019

Abstract

This study complements existing literature by assessing how various types of foreign aid complement each other in boosting inclusive human development in Africa. (a) When ‘aid to social infrastructure’ is moderated with other aid types, ‘action on debts’ is substitutive whereas ‘aid to the production sector’, ‘aid for program assistance’ and humanitarian assistance are complementary. (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 ‘aid for 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’ are complementary to humanitarian assistance. The findings reveal various patterns that inform policy makers on the relevance of sequencing aid types to enhance inclusive development. Future research should focus on country-specific studies.

Keywords: Foreign Aid; Inclusive Development; Africa

JEL Classification: B20; F35; F50; O10; O55

Suggested Citation

Asongu, Simplice and Odhiambo, Nicholas, Foreign Aid Complementarities and Inclusive Human Development in Africa (January 23, 2019). A G D I Working Paper WP/19/021. Available at SSRN: https://ssrn.com/abstract=3376726 or http://dx.doi.org/10.2139/ssrn.3376726

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Nicholas Odhiambo

University of South Africa - Department of Economics ( email )

PO Box 392
Pretoria, 0003
South Africa

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
123
PlumX Metrics