Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries
This paper analyses threshold effects and transmission Channels of foreign aid on economic growth of WAEMU countries using the World Bank, the International Monetary Fund and the International Country Risk Guide databases to cover the period spanning from 1980 to 2018. After applying endogenous thre...
| Autores principales: | , , , |
|---|---|
| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Elsevier
2022
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/141278 |
| _version_ | 1855533036849856512 |
|---|---|
| author | Bayale, Nimonka Traoré, Fousseini Diarra, Souleymane Maniraguha, Faustin |
| author_browse | Bayale, Nimonka Diarra, Souleymane Maniraguha, Faustin Traoré, Fousseini |
| author_facet | Bayale, Nimonka Traoré, Fousseini Diarra, Souleymane Maniraguha, Faustin |
| author_sort | Bayale, Nimonka |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper analyses threshold effects and transmission Channels of foreign aid on economic growth of WAEMU countries using the World Bank, the International Monetary Fund and the International Country Risk Guide databases to cover the period spanning from 1980 to 2018. After applying endogenous threshold approach to determine aid threshold above which its affects growth and estimate its long-term effects, Pagan's *Residual-Generated Regressors* method was used to identify channels that can modulate effects of aid on growth. Evidences strongly support the view that the relationship between aid and economic growth is non-linear with a threshold that lies between 12.37 and 14.08% of GDP. Above these values, the marginal effect of aid is 2.1%. Moreover, results indicate that only investment seems to be a potential channel through which aid would affect growth. Thus, aid within the WAEMU countries is beneficial. Its content and use should be the main concern of donors and policy-makers. |
| format | Journal Article |
| id | CGSpace141278 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1412782025-10-26T13:02:24Z Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries Bayale, Nimonka Traoré, Fousseini Diarra, Souleymane Maniraguha, Faustin transmission channels economic agreements economic growth international agreements gross national product growth foreign investment This paper analyses threshold effects and transmission Channels of foreign aid on economic growth of WAEMU countries using the World Bank, the International Monetary Fund and the International Country Risk Guide databases to cover the period spanning from 1980 to 2018. After applying endogenous threshold approach to determine aid threshold above which its affects growth and estimate its long-term effects, Pagan's *Residual-Generated Regressors* method was used to identify channels that can modulate effects of aid on growth. Evidences strongly support the view that the relationship between aid and economic growth is non-linear with a threshold that lies between 12.37 and 14.08% of GDP. Above these values, the marginal effect of aid is 2.1%. Moreover, results indicate that only investment seems to be a potential channel through which aid would affect growth. Thus, aid within the WAEMU countries is beneficial. Its content and use should be the main concern of donors and policy-makers. 2022-03 2024-04-12T13:37:36Z 2024-04-12T13:37:36Z Journal Article https://hdl.handle.net/10568/141278 en Open Access Elsevier Bayale, Nimonka; Traoré, Fousseini; Diarra, Souleymane; and Maniraguha, Faustin. 2022. Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries. Transnational Corporations Review 14(1): 77-93. https://doi.org/10.1080/19186444.2022.2028541 |
| spellingShingle | transmission channels economic agreements economic growth international agreements gross national product growth foreign investment Bayale, Nimonka Traoré, Fousseini Diarra, Souleymane Maniraguha, Faustin Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries |
| title | Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries |
| title_full | Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries |
| title_fullStr | Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries |
| title_full_unstemmed | Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries |
| title_short | Endogenous threshold effects and transmission channels of foreign aid on economic growth: Evidence from WAEMU zone countries |
| title_sort | endogenous threshold effects and transmission channels of foreign aid on economic growth evidence from waemu zone countries |
| topic | transmission channels economic agreements economic growth international agreements gross national product growth foreign investment |
| url | https://hdl.handle.net/10568/141278 |
| work_keys_str_mv | AT bayalenimonka endogenousthresholdeffectsandtransmissionchannelsofforeignaidoneconomicgrowthevidencefromwaemuzonecountries AT traorefousseini endogenousthresholdeffectsandtransmissionchannelsofforeignaidoneconomicgrowthevidencefromwaemuzonecountries AT diarrasouleymane endogenousthresholdeffectsandtransmissionchannelsofforeignaidoneconomicgrowthevidencefromwaemuzonecountries AT maniraguhafaustin endogenousthresholdeffectsandtransmissionchannelsofforeignaidoneconomicgrowthevidencefromwaemuzonecountries |