HAS FOREIGN AID IMPROVED GOVERNANCE AND HUMAN DEVELOPMENT IN WEST AFRICA?
HAS FOREIGN AID IMPROVED GOVERNANCE AND HUMAN DEVELOPMENT IN WEST AFRICA?
Author(s): Stanley Egenti, Chinedu Nevo, Israel Onwe, Tobechi Faith, Oludare DurodolaSubject(s): Business Economy / Management, Sociology, Socio-Economic Research
Published by: Międzynarodowy Instytut Innowacji "Nauka - Edukacja - Rozwój"
Keywords: Foreign Aid; Governance; Quality; Human Development; West Africa;
Summary/Abstract: This study investigates foreign aid, quality of governance and human development in WestAfrica, adopting the Random-Effects Model (REM) of the Panel Data Analysis and EstimatedGeneralized Least Square (EGLS) estimation technique for 15 West African countriesfrom 1990-2015. Governance Composite Index with Goal Post and Geometric Mean approach on six indicators of governance were constructed to treat foreign aid effects ongovernance collectively. Results showed that most foreign aids improve human development(income, life expectancy, and education). However, some foreign aids weaken thequality of governance. The researchers recommended that government should have littleor no role in foreign aid influx into the economy; rather, foreign aid should be channeledthrough tax effort and private investment. More so, donors should concentrate on poorcountries with good institutions if foreign aid must be channeled through governmentexpenditure. Finally, an independent body should ensure mutual accountability betweenrecipients and donors routinely to ensure foreign aid improves human development withoutweakening governance quality.
Journal: International Journal of New Economics and Social Sciences IJONESS
- Issue Year: 9/2019
- Issue No: 1
- Page Range: 215-227
- Page Count: 13
- Language: English, Polish