Testing the impact of foreign aid on domestic private investment in West Africa

Eberechukwu Uneze
African Review of Money Finance and Banking 2010, pp. 59-84

Drawing on the vast literature on aid allocation, this paper examines whether foreign aid has any impact on private investment in West Africa, controlling for other determinants of private investment. Following from this, the paper investigates whether multilateral aid and bilateral aid affect private investment differently. In a related analysis, the paper examines the impact of aid uncertainty on private investment. The results show that multilateral aid affects private investment positively, but not bilateral aid, and aid uncertainty, defined by the coefficient of variation has a negative impact on private investment and therefore reduces the impact of aid on domestic private investment.

Article Full Text

Issue: 2010
Contributors: Uneze, Eberechukwu   
Keywords: , ,