Local Financial Development and the Aid-Growth Relationship

Nkusu, Mwanza; Sayek, Selin

doi:10.5089/9781451875775.001

Cited by 20 publications

(21 citation statements)

References 25 publications

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“…Consistent with our hypothesis, we find a negative coefficient of the interactive term suggesting that countries with well-developed financial sectors are associated with lower volatility. This finding is somewhat akin to Nkusu and Sayek (2004). A plausible explanation from this study may be that, because aid provides more resources to governments of the recipient countries reduces their appetite to compete with the private sector for credit from the domestic financial sector thereby freeing credit to the private sector.…”

Section: Resultsmentioning

confidence: 62%

“…Using a sample of 39 developing between 1975 and 2000, Duc (2006) found a significant negative relationship between aid and economic growth. The other strand of empirical studies (Hansen and Tarp 20001;Nkusu and Sayek, 2004;Ekanayake and Chatrna, 2010;De La Croix and Delavallade, 2013;Young and Sheehan, 2014) note the inconclusiveness with respect to the relationship between aid and growth. Ekanayake and Chatrna (2010) found that foreign aid had a mixed impact on economic growth of developing countries.…”

Section: Introductionmentioning

confidence: 99%

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Aid, Aid Volatility and Sectoral Growth in Sub-Saharan Africa: Does Finance Matter?

Kumi

Ibrahim

Yeboah

2017

Journal of African Business

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This article examines the impact of aid and its volatility on sectoral growth by relying on panel dataset of 37 sub-Saharan African (SSA) countries for the period 1983-2014. Findings from the system-generalised methods of moments (GMM) show that, while foreign aid significantly drives sectoral growth, aid volatility deteriorates sectoral value additions impacting heavily on non-tradable sectors with no apparent effect on the agricultural sector.The deleterious effect of aid volatility on sectoral value additions in SSA is weakened by a well-developed financial system with significant impact on the tradable sector. Evidently, development of domestic financial markets enhances aid effectiveness.

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Section: Resultsmentioning

confidence: 62%

Section: Introductionmentioning

confidence: 99%

Aid, Aid Volatility and Sectoral Growth in Sub-Saharan Africa: Does Finance Matter?

Kumi

Ibrahim

Yeboah

2017

Journal of African Business

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“…This is because both utilization and absorptive capacity affect the country's export competitiveness. Nkusu and Sayek (2004) in their "Local financial development and the aid-growth relationship" assessed 86 countries from 1970-1999 broken into 1970-1999 and 1995-1999. The study followed Mankiw, Romer, and Weil (1992) and used weighted least squares (WLS) regression.…”

Section: Competitiveness and Global Financementioning

confidence: 99%

Global Finance, Competitiveness, and Sustainable Development Goals in Emerging and Least Developing Economies (ELDCs): A Review of Literature

Onuchuku

Amaefule

2020

EUROPEAN J SUSTAINAB DEV

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This paper aims to provide a healthy review of literature on the global imperativeness of the term global finance and competitiveness to achieve Sustainable Development Goals (SDGs). We employed a content analysis method to significantly explore the impact of global finance on financing for sustainable development (FSD) through competitiveness. What are the lessons for ELDCs? From the reviewed literature, we observe that global financing causes a dual impact on competitiveness through the Real Effective Exchange Rate (REER) effects. The study found that global FSD on the informal sector, social and environmental factors, as well as human development, is unarguably silent. Also, there is the multiplicity of function in the global financing mix. From the literature reviewed, we observed a positive link between SDGs, global finance, and competitiveness. SDGs differ across countries because the financing approach on competitiveness differs across countries. Thus, to achieve SDGs in ELDCs, global responses should be developed around improving internal and external competitiveness. These two types of competitiveness would be encompassing. Global financing should be directed to exploring economic, social, and environmental quality in internal and external competitiveness in ELDCs. This classification would deepen the World Economic Forum (WEF) GCI 4.0 based on innovative, efficiency and factors element. Thus inclusive growth and sustainable development could be strengthened through the application of internal and external competitiveness policies that would holistically upgrade the industrial and manufacturing competitiveness frontiers and gains from the global market share frontiers to accelerate SDGs in ELDCs.

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“…The theory is criticised for failing to prescribe governance values and norms which should be followed in order to bring about desired development and urbanisation [56,57]. Notwithstanding these criticisms, the rationale of this theory offers the principles upon which the development and urbanisation model pursued in Kampala, Uganda, is based [58]. As a matter of fact, the official development and urbanisation programme pursued in Kampala under the PEAP umbrella was developed based on the modernisation theory [59].…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The City as an Experimental Space: The Interface between Public Satisfaction and Effects on Urban Planning Resulting from Kampala City’s Sprawl

Bidandi¹

2018

Urban Agglomeration

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This paper analyses the interface between public satisfaction and effects on urban planning in the context of Kampala City, Uganda. The interface is significant because it provides an understanding of the effects of urban sprawl service delivery in relation to planning. It further discusses the underlying forces responsible for the city's urbanisation process. The objective of the study is to establish what defines Kampala's public satisfaction with urban changes resulting from the city's sprawl. The study involves focus group discussion interviews, which were used to collect the qualitative data from a group of respondents simultaneously. Moreover, purposive sampling was used to select the respondents interviewed. The analysis indicates that public dissatisfaction with poor urban environment has resulted in urban changes, which are officially sanctioned to take place in their residential areas, and the desire to access services easily that explains urban dwellers' decisions.

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Local Financial Development and the Aid-Growth Relationship

Cited by 20 publications

References 25 publications

Aid, Aid Volatility and Sectoral Growth in Sub-Saharan Africa: Does Finance Matter?

Aid, Aid Volatility and Sectoral Growth in Sub-Saharan Africa: Does Finance Matter?

Global Finance, Competitiveness, and Sustainable Development Goals in Emerging and Least Developing Economies (ELDCs): A Review of Literature

The City as an Experimental Space: The Interface between Public Satisfaction and Effects on Urban Planning Resulting from Kampala City’s Sprawl

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