John Loxley|Harry A. Sackey
Aid Effectiveness in Africa*
University of Manitoba|Vancouver Island University|University of Manitoba|Vancouver Island University
abstract paper revisits issue aid effectiveness africa examining effect aid growth historically africas development context appears aiddependent one new partnership africas development nepad calling additional capital flows improve growth levels continent attainment uns millennium development goals partly conditioned aid inflows new urgency evaluate effectiveness aid using sample comprising 40 member countries african union estimating fixedeffects growth models find positive statistically significant effect aid growth aid increases investment major transmission mechanism aidgrowth relationship extension analysis examine sources growth finance shows aid workers remittances debtservice resources domestic savings important sources development finance thus aid matters continents growth however given apparent donor aid fatigue debt servicing implications concessional loans paper supports need strategize reduce future dependence aid