Foreign Aid and Inclusive Development: Updated Evidence from Africa, 2005–2012

Simplice A. Asongu, Jacinta C. Nwachukwu

Research output: Contribution to journalArticlepeer-review

86 Citations (Scopus)
122 Downloads (Pure)


ObjectiveMotivated by the April 2015 World Bank Publication on MDGs, which reveals that poverty has been declining in all regions of the world with the exception of African countries, this study investigates the effects of a plethora of foreign aid dynamics on inequality-adjusted human development.MethodsContemporary and noncontemporary OLS, fixed effects, and a system GMM technique with forward orthogonal deviations are employed. The empirical evidence is based on an updated sample of 53 African countries for the period 2005–2012.ResultsThe following findings are established. First, the impacts of aid dynamics with high degrees of substitution are positive. These include aid for: social infrastructure, economic infrastructure, the productive sector, and multisectors. Second, the effect of humanitarian assistance is consistently negative across specifications and models. Third, the effects of program assistance and action on debt are ambiguous because they become positive with the GMM technique.ConclusionsJustifications for these changes and clarifications with respect to existing literature are provided. Policy implications are discussed in light of the post-2015 development agenda. We also provide some recommendations for a rethinking of theories and models on which development assistance is based.
Original languageEnglish
Pages (from-to)282-298
Number of pages17
JournalSocial Science Quarterly
Issue number1
Early online date13 Apr 2016
Publication statusPublished - Mar 2017

Bibliographical note

This is the peer reviewed version of the following article: Asongu, SA &
Nwachukwu, JC 2016, 'Foreign Aid and Inclusive Development: Updated Evidence
from Africa, 2005–2012*' Social Science Quarterly, vol (98) 1, 282-298. DOI:
10.1111/ssqu.12275, which has been published in final form at This article may be used for noncommercial purposes in accordance with Wiley Terms and Conditions for SelfArchiving.


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