The effectiveness of aid on savings and investment in Sub-Saharan Africa: do volatility and institutional quality matter?

References

• Addison, T., G. Mavrotas, and M. Mcgillivray. 2005b. “Aid to Africa: An Unfinished Agenda.” Journal of International Development 17: 989–1001. doi:10.1002/(ISSN)1099-1328.
   Google Scholar
• Aizenman, J., and N. Marion. 1993. “Macroeconomic Uncertainty and Private Investment’.” Economics Letters 41: 207–210. doi:10.1016/0165-1765(93)90198-L.
   Web of Science ®Google Scholar
• Alesina, A., and D. Dollar. 2000. “Who Gives Foreign Aid to Whom and Why?.” Journal of Economic Growth 5 (1): 33–63. doi:10.1023/A:1009874203400.
   Web of Science ®Google Scholar
• Altunbaş, Y., and J. Thornton. 2014. “The (Small) Blessing of Foreign Aid: Further Evidence on Aid’s Impact on Democracy.” Applied Economics 46 (32): 3922–3930. doi:10.1080/00036846.2014.946186.
   Web of Science ®Google Scholar
• Arellano, M., and O. Bover. 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Models.” Journal of Econometrics 68 (1): 29–51. doi:10.1016/0304-4076(94)01642-D.
   Web of Science ®Google Scholar
• Arellano, M., A. Bulíř, T. Lane, and L. Lipschitz. 2009. “The Dynamic Implications of Foreign Aid and Its Variability.” Journal of Development Economics 88 (1): 87–102. doi:10.1016/j.jdeveco.2008.01.005.
   Web of Science ®Google Scholar
• Bayart, J. -F. 1992. "The State In Africa: The Politics Of The Belly." Longman: New York
   Google Scholar
• Bazoumana, O. 2007. “Foreign Aid, Public Savings Displacement and Aid Dependency in Côte D’ivoire: An Aid Disaggregation Approach.” Oxford Development Studies 35 (1): 33–46. doi:10.1080/13600810601167579.
   Google Scholar
• Bjørnskov, C. 2010. “Do Elites Benefit from Democracy and Foreign Aid in Developing Countries?.” Journal of Development Economics 92: 115–124. doi:10.1016/j.jdeveco.2009.03.001.
   Web of Science ®Google Scholar
• Block, S.,. A. 2002. “Political Business Cycles, Democratization and Economic Reform: The Case of Africa.” Journal of Development Economics 67: 205–228. doi:10.1016/S0304-3878(01)00184-5.
   Web of Science ®Google Scholar
• Blonigen, B. A. 2004. “The Effects Of Bilateral Tax Treaties On Us Fdi Activity.” International Tax And Public Finance 11 (5): 601–22.
   Web of Science ®Google Scholar
• Blundell, R., and S. Bond. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.” Journal of Econometrics 87: 115–143. doi:10.1016/S0304-4076(98)00009-8.
   Web of Science ®Google Scholar
• Boone, P. 1996. “Politics And The Effectiveness Of Foreign Aid.” European Economic Review 40 (2): 289–329.
   Web of Science ®Google Scholar
• Bowles, P. 1987. “Foreign Aid And Domestic Savings In Less Developed Countries: Some Tests For Causality.” World Development 15 (6): 789-796.
   Web of Science ®Google Scholar
• Bräutigam, D. A., and S. Knack. 2004. “Foreign Aid, Institutions, And Governance In Sub-saharan Africa.” Economic Development And Cultural Change 52 (2): 255-285.
   Web of Science ®Google Scholar
• Bulíř, A., and A. J. Hamann. 2005. "Volatility Of Development Aid: From The Frying Pan Into The Fire?." International Monetary Fund paper presented at the Seminar on Foreign Aid and Macroeconomic Management, Maputo, 14 and 15 March. http://www.imf.org/external/np/seminars/eng/2005/famm/pdf/hamann.pdf
   Google Scholar
• Bulíř, A., and A.,. J. Hamann. 2003. “Aid Volatility: An Empirical Assessment.” IMF Staff Papers 50 (1): 64–89.
   Google Scholar
• Bulíř, A., and A.,. J. Hamann. 2008. “Volatility of Development Aid: From the Frying Pan into the Fire?.” World Development 36 (10): 2048–2066. doi:10.1016/j.worlddev.2007.02.019.
   Web of Science ®Google Scholar
• Bulíř, Aleš, and A. Javier Hamann. 2005. "Volatility Of Development Aid: From The Frying Pan Into The Fire?" International Monetary Fund paper presented at the Seminar on Foreign Aid and Macroeconomic Management, Maputo, 14 and 15 March. http://www.imf.org/external/np/seminars/eng/2005/famm/pdf/hamann.pdf
   Google Scholar
• Bulíř A., Lane T. 2002. “Aid and fiscal management”, IMF Working Paper 122, June.
   Google Scholar
• Burnside, C., and D. Dollar. 2000. “", Growth, The Incentive Regime, And Poverty Reduction". The World Bank.” Structure And Policies 3: 210.
   Google Scholar
• Celasun, O., and J. Walliser. 2008. “managing Aidsurprises.” finance And Development 42 (3): 34-37.
   Google Scholar
• Chenery, H. B., and A. M Strout. 1966. “Foreign Assistance And Economic Development.” The American Economic Review 679–733.
   Web of Science ®Google Scholar
• Cogley, T., and Nason, J. M. 1995. “Effects of the Hodrick-Prescott filter on trend and difference stationary time series Implications for business cycle research.” Journal of Economic Dynamics and control, 19(1): 253–278.
   Web of Science ®Google Scholar
• Clemens, M., S. Radelet, and R. Bhavnani. 2004. "Counting Chickens When They Hatch: The Short Term Effect of Aid on Growth." Center for Global Development working paper no. 44
   Google Scholar
• Collier, P. 1999. “Aid ‘Dependency’: A Critique.” Journal of African Economies 8: 528–545. doi:10.1093/jae/8.4.528.
   Web of Science ®Google Scholar
• Crawford, G. 2000. "Foreign Aid And Political Reform: A Comparative Analysis Of Democracy Assistance And Political Conditionality." Springer
   Google Scholar
• Dalgaard, C. J., and L. Erickson. 2009. “Reasonable Expectations And The First Millennium Development Goal: How Much Can Aid Achieve?.” World Development 37 (7): 1170-1181.
   Web of Science ®Google Scholar
• De Renzio, P. 2005. Can More Aid Be Spent in Africa?: In ODI Opinions. London: Overseas Development Institute.
   Google Scholar
• Dollar, D. and L. Pritchett. 1998. "Assessing Aid: What Works, What Doesn't, And Why." New York: Oxford University Press.
   Google Scholar
• Downs, A. 1957. An Economy Theory of Democracy. New York: Harper and Row.
   Google Scholar
• Easterly, W. 1993. “How much do distortions affect growth?.” Journal of Monetary economics, 32 (2): 187–212.
   Google Scholar
• Easterly, W. 1999. “How much do distortions affect growth?.” Journal of Monetary economics 32 (2): 187–212.
   Web of Science ®Google Scholar
• Feldstein, M., and C. Horioka. 1980. “Domestic Saving and International Capital Flows.” The Economic Journal 90 (358): 314–329. doi:10.2307/2231790.
   Web of Science ®Google Scholar
• Fielding, D., and G Mavrotas. 2005. "The Volatility Of Aid." (No. 2005/06). WIDER Discussion Papers//World Institute for Development Economics (UNU-WIDER)
   Google Scholar
• Fielding, D., and G. Mavrotas. 2008. “Aid Volatility and Donor–Recipient Characteristics in ‘Difficult Partnership Countries’.” Economica 75: 481–494. doi:10.1111/j.1468-0335.2007.00621.x.
   Web of Science ®Google Scholar
• Fischer, S. 1993. “The Role of Macroeconomic Factors in Growth.” Journal of Monetary Economics 32 (3): 485–512. doi:10.1016/0304-3932(93)90027-D.
   Web of Science ®Google Scholar
• Goldsmith, R., W. 1969. Financial Structure and Development. NewHaven, CT: Yale University Press.
   Google Scholar
• Gomanee, K., G. Girma, and O. Morrissey. 2005. “Aid and Growth in Sub-Saharan Africa, Accounting for Transmission Mechanisms.” Journal of International Development 17: 1055–1075. doi:10.1002/jid.1259.
   Google Scholar
• Gomanee, K., S. Girma, and O. Morrissey. 2003.  "Searching for Aid Threshold Effects: Aid, Growth and the Welfare of the Poor." CREDIT Research Papers 02/05, Centre for Research in Economic Development and International Trade, University of Nottingham: Nottingham.
   Google Scholar
• Greene, J., and D. Villanueva. 1991. “Private Investment in Developing Countries.” IMF Staff Papers 38 (1): 33–58. doi:10.2307/3867034.
   Google Scholar
• Griffin, K. B., and J. L. Enos. 1970. “Foreign Assistance: Objectives And Consequences.” Economic Development And Cultural Change 18 (3): 313-327.
   Web of Science ®Google Scholar
• Hamann, M. A. J., and M. A Bulir. 2001. "How Volatile And Unpredictable Are Aid Flows, And What Are The Policy Implications?" (No. 1–167). International Monetary Fund
   Google Scholar
• Hansen, H., and F. Tarp. 2001. “Aid and Growth Regressions.” Journal of Development Economics 64 (2): 547–570. doi:10.1016/S0304-3878(00)00150-4.
   Web of Science ®Google Scholar
• Harrod, R.,. F. 1939. “An Essay in Dynamic Theory.” Economic Journal 49 (193): 14–33. doi:10.2307/2225181.
   Google Scholar
• Harrod, R. F. 1960. “Second essay in dynamic theory.” The Economic Journal, 277–293.
   Web of Science ®Google Scholar
• Harris, M. N., and Sevestre, P. 2008. “Dynamic models for short panels“. In The econometrics of panel data 249–278. Springer Berlin Heidelberg.
   Google Scholar
• Henisz, W. J., and B. A. Zelner. 2001. “The political Economy Of Private Electricity Provision In Southeast Asia.” east Asian Economic Perspectives 15 (1): 10-36. doi:.
   Google Scholar
• Herzer, D., and O Morrissey. 2009. "The Long-run Effect Of Aid On Domestic Output." (No. 09/01) CREDIT Research Paper
   Google Scholar
• Hodler, R., and S. Knight David. 2012. “Ethnic Fractionalisation and Aid Effectiveness.” Journal of African Economies 21 (1): 65–93. doi:10.1093/jae/ejr036.
   Web of Science ®Google Scholar
• Hodrick, R. J. 1997. “Postwar U.s. Business Cycles: An Empirical Investigation.” Journal Of Money, Credit And Banking 29 (1): 1–16.
   Web of Science ®Google Scholar
• Holtham, G., and A. Hazlewood. 1976. Aid and Inequality in Kenya: British Development Assistance to Kenya, 74–99. London: Croom Helm/ODI.
   Google Scholar
• Hudson, J. 2015. “Consequences of Aid Volatility for Macroeconomic Management and Aid Effectiveness.” World Development 69: 62–74. doi:10.1016/j.worlddev.2013.12.010.
   Web of Science ®Google Scholar
• IMF. 1995. “International Capital Markets: Developments, Prospects, and Policy Issues.” (Washington).
   Google Scholar
• Keefer, P., and S Knack. 1997. “"Why Don't Poor Countries Catch Up? A Cross‐national Test Of An Institutional Explanation.” " Economic Inquiry 35 (3): 590–602.
   Web of Science ®Google Scholar
• Kerner, A. 2009. “"Why Should I Believe You? The Costs And Consequences Of Bilateral Investment Treaties.” " International Studies Quarterly 53 (1): 73–102. doi:.
   Web of Science ®Google Scholar
• Klitgaard, R. E. 1991. “"Strategies For Reform.” " Journal Of Democracy 2 (4): 86–100.
   Google Scholar
• Krueger, A. 1978. Liberalization Attempts and Consequences. Ballinger: Cambridge.
   Google Scholar
• Lancaster, C. 1999. “Aid Effectiveness in Africa: The Unfinished Agenda.” Journal of African Economies 8 (4): 487–503. doi:10.1093/jae/8.4.487.
   Web of Science ®Google Scholar
• Lele, U., and Goldsmith, A. A. 1989. “The development of national agricultural research capacity: India's experience with the Rockefeller Foundation and its significance for Africa.” Economic Development and Cultural Change, 37(2): 305–343.
   Web of Science ®Google Scholar
• Lensink, R. 2008. “"Aid Instability As A Measure Of Uncertainty And The Positive Impact Of Aid On Growth.".” Journal Of Development Studies vol. 36: pp. 31–49.
   Web of Science ®Google Scholar
• Lensink, R., and O. Morrissey. 2000. “Aid Instability as a Measure of Uncertainty and the Positive Impact of Aid on Growth.” Journal of Development Studies 36 (3): 31–49. doi:10.1080/00220380008422627.
   Web of Science ®Google Scholar
• Levin, V. and D. Dollar. 2005. “The Forgotten States: Aid Volumes And Volatility In Difficult Partnership Countries (1992–2002).” (mimeo), summary paper prepared for the DAC Learning and Advisory Process on Difficult Partnerships, Oxford Policy Management, November, Oxford
   Google Scholar
• Levine, R., and D. Renelt. 1992. “A Sensitivity Analysis of Cross-Country Growth Regressions.” The American Economic Review 82 (4): 942–963.
   Web of Science ®Google Scholar
• Levy, V. 1988. “Aid And Growth In Sub-saharan Africa: The Recent Experience.” European Economic Review 32 (9): 1777-179.
   Web of Science ®Google Scholar
• Loayza, N et al. 1999. “Financial Intermediation and Growth: Causality and Causes.” Journal of Monetary Economics 46 (1): 31–77.
   Web of Science ®Google Scholar
• Maren, M. 1997. “"The Road To Hell.” The Ravaging Effects Of Foreign Aid And International Charity." World And I 12: 264–271.
   Google Scholar
• Modigliani, F., R. Brumberg, (1954) Utility analysis and the consumption function: an interpretation of cross–section data, In: Kurihara, K,K, ed,. Post-Keynesian Economics. 388–436. New Brunswick, NJ:Rutgers University Press.
   Google Scholar
• Mosley, P., Hudson, J., & Horrell, S. 1987. “Aid, the public sector and the market in less developed countries” The Economic Journal, 97 (387): 616–641.
   Web of Science ®Google Scholar
• Mosley, P., Hudson, J., and Horrell, S. 1992. “Aid, the public sector and the market in less developed countries: A return to the scene of the crime.” Journal of International Development, 4 (2): 139–150.
   Google Scholar
• Morrissey, O. 2001. “"Does Aid Increase Growth?.” " Progress In Development Studies 1 (1): 37–50. doi:.
   Google Scholar
• Mosley, P., & Suleiman, A. 2007. “Aid, agriculture and poverty in developing countries.” Review of Development Economics, 11 (1): 139–158.
   Web of Science ®Google Scholar
• Moss, T., Pettersson, G., & van de Walle, N. 2008. “An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa.” In: Easterly, William (ed.) Reinventing Foreign Aid. MIT Press. ISBN 9780262550666.
   Google Scholar
• Nickell, S. 1981. “Biases in Dynamics Models with Fixed Effects.” Econometrica 49: 6. doi:10.2307/1911408.
   Web of Science ®Google Scholar
• North, D. C. 1990. "institutions, Institutional Change And Economic Performance". Cambridge university press
   Google Scholar
• Pack, H., and Pack, J. R. 1990. “Is foreign aid fungible? The case of Indonesia.” The Economic Journal, 100 (399): 188–194.
   Web of Science ®Google Scholar
• Pack, H., & Pack, J. R. 1993. “Foreign aid and the question of fungibility.” The Review of Economics and Statistics, 258–265.
   Google Scholar
• Pallage, S., M. Robe, A. Leland, and P. Meet. 2003. On the welfare cost of economic fluctuations in developing countries. International Economic Review, 44(2): 677–698.
   Google Scholar
• Pallage, S., and M.,A. Robe. 2001. “Foreign Aid and the Business Cycle.” Review of International Economics 9 (4): 641–672. doi:10.1111/roie.2001.9.issue-4.
   Google Scholar
• Peng, M. W. 2003. “Institutional Transitions And Strategic Choices.” Academy Of Management Review 28 (2): 275-296.
   Web of Science ®Google Scholar
• Rand, J., and F Tarp. 2002. “"business Cycles In Developing Countries: Are They Different?.” " World Development 30 (12): 2071–2088. doi:.
   Web of Science ®Google Scholar
• Ratha, D., S. Mohapatra, and S. Plaza, (2008) New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa, World Bank policy research working paper WPS4609
   Google Scholar
• Rodrik, D. 1990. “"How Should Structural Adjustment Programs Be Designed?.” " World Development 18 (7): 933–947.
   Web of Science ®Google Scholar
• Rodrik, D. 1996. “"Understanding Economic Policy Reform.” " Journal Of Economic Literature 34 (1): 9–41.
   Web of Science ®Google Scholar
• Roodman, D. 2009. “A Note on the Theme of Too Many Instruments.” Oxford Bulletin of Economics and Statistics 71: 135–158. doi:10.1111/obes.2009.71.issue-1.
   Web of Science ®Google Scholar
• Servén, L., and A. Solimano. 1993. “Debt Crisis, Adjustment Policies, and Capital Formation in Developing Countries: Where Do We Stand ?.” World Development 21 (11): 127–140. doi:10.1016/0305-750X(93)90141-U.
   Web of Science ®Google Scholar
• Shaw, E. 1973. Financial Deepening in Economic Development. New York: Oxford University Press.
   Google Scholar
• Svensson, J. 1999. “"Aid, Growth And Democracy.” " Economics & Politics 11 (3): 275–297.
   Google Scholar
• Svensson, J. 2000. “Foreign Aid And Rent-seeking.” Journal Of International Economics 51 (2): 437–461.
   Web of Science ®Google Scholar
• Turnovsky, S.,. J., and P. Chattopadhyay. 2003. “Volatility and Growth in Developing Economies: Some Numerical Results and Empirical Evidence.” Journal of International Economics 59 (2): 267–295. doi:10.1016/S0022-1996(02)00016-8.
   Web of Science ®Google Scholar
• Van Rijckeghem, C., and B Weder. 1997. "Corruption And The Rate Of Temptation: Do Low Wages In The Civil Service Cause Corruption?" International Monetary Fund Working Paper, IMF, Washington, DC
   Google Scholar
• White, H. 1992. “What do we know about aid's macroeconomic impact? An overview of the aid effectiveness debate.” Journal of International Development, 4 (2): 121–137.
   Google Scholar
• WTO. 2004. “World Trade Report 2004: Exploring the Linkage Between the Domestic Policy Environment and International Trade.” Geneva. World Trade Organisation.
   Google Scholar
• Yohou, H. D., M. Goujon, and W. Ouattara. 2016. “Heterogeneous Aid Effects On Tax Revenues: Accounting For Government Stability In Waemu Countries.” Journal Of African Economies 25 (3): 468-498.
   Web of Science ®Google Scholar