Aide et Croissance dans les pays de l’Union Economique et Monétaire Ouest Africaine (UEMOA) : retour sur une relation controversée

Bayale, Nimonka (2018): Aide et Croissance dans les pays de l’Union Economique et Monétaire Ouest Africaine (UEMOA) : retour sur une relation controversée.

Abstract

The main purpose of this paper is to analyze threshold effects of official development assistance (ODA) on economic growth in WAEMU zone countries. To achieve this, the study is based on OECD and WDI data covering the period 1980-2015 and used Hansen’s Panel Threshold Regression (PTR) model to “bootstrap” aid threshold above which its effectiveness is effective. The evidence strongly supports the view that the relationship between aid and economic growth is non-linear with a unique threshold which is 12.74% GDP. Above this value, the marginal effect of aid is 0.69 points, “all things being equal to otherwise”. One of the main contribution of this paper is to show that WAEMU countries need investments that could be covered by the foreign aid. This later one should be considered just as a complementary resource. Thus, WEAMU countries should continue to strengthen their efforts in internal resource mobilization in order to fulfil this need.

• Item Type: MPRA Paper
• English Title: Aid and Growth in West African Economic and Monetary Union (WAEMU) countries : a return back to a controversial relationship
• Language: French
• Keywords: Foreigen Aid, Panel Threshold Regression, Economic Growth, WAEMU zone
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C26 - Instrumental Variables (IV) Estimation; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63 - Computational Techniques ; Simulation Modeling; F - International Economics > F3 - International Finance > F35 - Foreign Aid; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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