PUBLICATIONS
The AGDI has published substantially in fulfillment of its mission statement of contributing to knowledge towards African development:
IDEAS
http://ideas.repec.org/d/agdiycm.html
ECONSTOR
https://www.econstor.eu/dspace/escollectionhome/10419/123513
Publication List
2019 |
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1. | Asongu, Joseph Nnanna Simplice A Politics & Policy, 2019. Abstract | Links | BibTeX | Tags: Foreign aid, governance, instability @article{Asongu_202, author = {Joseph Nnanna Simplice A. Asongu}, url = {https://onlinelibrary.wiley.com/doi/full/10.1111/polp.12320}, doi = {10.1111/polp.12320}, year = {2019}, date = {2019-07-26}, journal = {Politics & Policy}, abstract = {This article contributes to the attendant literature by bundling governance dynamics and focusing on foreign aid instability instead of foreign aid. We assess the role of foreign aid instability on governance dynamics in 53 African countries for the period 1996‐2010. An autoregressive endogeneity‐robust generalized method of moments is employed. Instabilities are measured in terms of variance of the errors and standard deviations. Three main aid indicators are used, namely: total aid, aid from multilateral donors, and bilateral aid. Principal component analysis is used to bundle governance indicators, namely: political governance (voice and accountability and political stability/no violence), economic governance (regulation quality and government effectiveness), institutional governance (rule of law and corruption control), and general governance (political, economic, and institutional governance). Our findings show that foreign aid instability increases governance standards, especially political and general governance. Policy implications are discussed.}, keywords = {Foreign aid, governance, instability}, pubstate = {published}, tppubtype = {article} } This article contributes to the attendant literature by bundling governance dynamics and focusing on foreign aid instability instead of foreign aid. We assess the role of foreign aid instability on governance dynamics in 53 African countries for the period 1996‐2010. An autoregressive endogeneity‐robust generalized method of moments is employed. Instabilities are measured in terms of variance of the errors and standard deviations. Three main aid indicators are used, namely: total aid, aid from multilateral donors, and bilateral aid. Principal component analysis is used to bundle governance indicators, namely: political governance (voice and accountability and political stability/no violence), economic governance (regulation quality and government effectiveness), institutional governance (rule of law and corruption control), and general governance (political, economic, and institutional governance). Our findings show that foreign aid instability increases governance standards, especially political and general governance. Policy implications are discussed. |
2. | U., Beecroft Asongu Efobi I S Foreign Trade Review, 2019. Abstract | Links | BibTeX | Tags: Africa, Development, Foreign aid, Political economy @article{Asongu_207, author = {Beecroft Asongu I S Efobi U.}, url = {https://journals.sagepub.com/doi/abs/10.1177/0015732519851633}, doi = {10.1177/0015732519851633}, year = {2019}, date = {2019-07-20}, journal = {Foreign Trade Review}, abstract = {This study considers foreign aid flow by sector in which the aid is directed and then estimates its impact on corruption in order to clarify the specific direction of aid flow that triggers (or does not trigger) corrupt practices. Data are from the Organisation for Economic Co-operation and Development database, Freedom House dataset, and the World Bank Governance Indicators. The dynamic system GMM and quantile regressions (QR) were estimated for robust estimation and correction of endogeneity issues. We found that aid flows for the development of economic infrastructure, multi-sector and programme assistance were consistently reducing corruption. This result stands for both the entire sample and for the African countries (especially for countries at the 25th, 50th and 75th quintiles). Aid flows to social infrastructure and debt relief significantly induce corrupt practices in the sampled countries. These forms of aid only spur rent-seeking behaviour for countries at the lower quintiles of corruption. Two robust checks were estimated, including: (a) using an alternate explained variable—the corruption measure by Transparency International; and (b) correcting for endogeneity in the QR estimation by instrumenting the independent variables of interest with their first-lags. For both checks, the signs and significant values of the variables were consistent with the earlier estimation.}, keywords = {Africa, Development, Foreign aid, Political economy}, pubstate = {published}, tppubtype = {article} } This study considers foreign aid flow by sector in which the aid is directed and then estimates its impact on corruption in order to clarify the specific direction of aid flow that triggers (or does not trigger) corrupt practices. Data are from the Organisation for Economic Co-operation and Development database, Freedom House dataset, and the World Bank Governance Indicators. The dynamic system GMM and quantile regressions (QR) were estimated for robust estimation and correction of endogeneity issues. We found that aid flows for the development of economic infrastructure, multi-sector and programme assistance were consistently reducing corruption. This result stands for both the entire sample and for the African countries (especially for countries at the 25th, 50th and 75th quintiles). Aid flows to social infrastructure and debt relief significantly induce corrupt practices in the sampled countries. These forms of aid only spur rent-seeking behaviour for countries at the lower quintiles of corruption. Two robust checks were estimated, including: (a) using an alternate explained variable—the corruption measure by Transparency International; and (b) correcting for endogeneity in the QR estimation by instrumenting the independent variables of interest with their first-lags. For both checks, the signs and significant values of the variables were consistent with the earlier estimation. |
3. | Asongu, Nicholas Odhiambo Simplice M A Journal of Social Service Research, 2019. Abstract | Links | BibTeX | Tags: Africa, Foreign aid, inclusive development @article{Asongu_230, author = {Nicholas Odhiambo M Simplice A. Asongu}, url = {https://www.tandfonline.com/doi/full/10.1080/01488376.2019.1612821}, doi = {10.1080/01488376.2019.1612821}, year = {2019}, date = {2019-05-15}, journal = {Journal of Social Service Research}, abstract = {This study complements existing literature by assessing how various types of foreign aid complement each other in boosting inclusive human development in Africa. (a) When ‘aid to social infrastructure’ is moderated with other aid types, ‘action on debts’ is substitutive whereas ‘aid to the production sector’, ‘aid for program assistance’ and humanitarian assistance are complementary. (b) ‘Aid to the production sector’ (‘action on debt’) is complementary (substitutive) to ‘aid for economic infrastructure’. (c) Whereas ‘action on debt’ is a substitute to ‘aid to the production sector’, ‘aid for social infrastructure’ and ‘aid for economic infrastructure’ are complementary. (d) ‘Action on debt’ is a substitute for ‘aid to the multi-sector’. (e) While ‘aid for social infrastructure’ and ‘action on debt’ are substitutive to ‘aid for program assistance’; humanitarian assistance is complementary. (f) The following are substitutes to ‘action on debt’: ‘aid for economic infrastructure’, ‘aid to the production sector’, ‘aid to the multi-sector’ and ‘program assistance’. (g) ‘Aid for social infrastructure’ and ‘program assistance’ are complementary to humanitarian assistance. The findings reveal various patterns that inform policy makers on the relevance of sequencing aid types to enhance inclusive development. Future research should focus on country-specific studies.}, keywords = {Africa, Foreign aid, inclusive development}, pubstate = {published}, tppubtype = {article} } This study complements existing literature by assessing how various types of foreign aid complement each other in boosting inclusive human development in Africa. (a) When ‘aid to social infrastructure’ is moderated with other aid types, ‘action on debts’ is substitutive whereas ‘aid to the production sector’, ‘aid for program assistance’ and humanitarian assistance are complementary. (b) ‘Aid to the production sector’ (‘action on debt’) is complementary (substitutive) to ‘aid for economic infrastructure’. (c) Whereas ‘action on debt’ is a substitute to ‘aid to the production sector’, ‘aid for social infrastructure’ and ‘aid for economic infrastructure’ are complementary. (d) ‘Action on debt’ is a substitute for ‘aid to the multi-sector’. (e) While ‘aid for social infrastructure’ and ‘action on debt’ are substitutive to ‘aid for program assistance’; humanitarian assistance is complementary. (f) The following are substitutes to ‘action on debt’: ‘aid for economic infrastructure’, ‘aid to the production sector’, ‘aid to the multi-sector’ and ‘program assistance’. (g) ‘Aid for social infrastructure’ and ‘program assistance’ are complementary to humanitarian assistance. The findings reveal various patterns that inform policy makers on the relevance of sequencing aid types to enhance inclusive development. Future research should focus on country-specific studies. |
2018 |
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4. | U., Asongu & Beecroft Efobi S I International Economics, 2018. Abstract | Links | BibTeX | Tags: Foreign aid, foreign investment, terrorism @article{Asongu_294, author = {Asongu & Beecroft S I Efobi U.}, url = {https://www.tandfonline.com/doi/full/10.1080/10168737.2018.1549089}, doi = {10.1080/10168737.2018.1549089}, year = {2018}, date = {2018-11-22}, journal = {International Economics}, abstract = {This paper checks the effect of foreign aid on terrorism–foreign direct investment (FDI) nexus, while considering the extent of domestic corruption control (CC). The empirical evidence is based on a sample of 78 developing countries. The following findings were established: the negative effect of terrorism on FDI is apparent only in countries with higher levels of CC; foreign aid dampens the negative effect of terrorism on FDI only in countries with high level of CC. Also, the result is mixed when foreign aid is subdivided into its bilateral and multilateral components. While our findings are in accordance with the stance that bilateral aid is effective in reducing the adverse effect of terrorism on FDI, we find that multilateral aid also decreases the adverse effect of other forms of terrorism that can neither be classified as domestic or transnational. Policy implications are discussed in the paper.}, keywords = {Foreign aid, foreign investment, terrorism}, pubstate = {published}, tppubtype = {article} } This paper checks the effect of foreign aid on terrorism–foreign direct investment (FDI) nexus, while considering the extent of domestic corruption control (CC). The empirical evidence is based on a sample of 78 developing countries. The following findings were established: the negative effect of terrorism on FDI is apparent only in countries with higher levels of CC; foreign aid dampens the negative effect of terrorism on FDI only in countries with high level of CC. Also, the result is mixed when foreign aid is subdivided into its bilateral and multilateral components. While our findings are in accordance with the stance that bilateral aid is effective in reducing the adverse effect of terrorism on FDI, we find that multilateral aid also decreases the adverse effect of other forms of terrorism that can neither be classified as domestic or transnational. Policy implications are discussed in the paper. |
5. | A., & Leke Asongu I J S Arthaniti: Journal of Economic Theory and Practice, 2018. Abstract | Links | BibTeX | Tags: Developing countries, Development, Exports, Foreign aid, terrorism @article{Asongu_308, author = {& Leke I J Asongu S. A.}, url = {http://journals.sagepub.com/eprint/UyXYDcecB7fZRHuKNg6D/full}, doi = {10.1177/0976747918802649}, year = {2018}, date = {2018-10-30}, journal = {Arthaniti: Journal of Economic Theory and Practice}, abstract = {The study investigates whether development assistance can be used to crowd-out the negative effect of terrorism on international trade. The empirical evidence is based on a panel of 78 developing countries for the period 1984–2008 and quantile regressions. The following main findings are established. First, bilateral aid significantly reduces the negative effect of transnational terrorism on trade in the top quantiles of trade distribution. Second, multilateral aid also significantly mitigates the negative effect of terrorism dynamics on trade in the top quantiles of trade distributions. It follows that it is primarily in countries with above-median levels of international trade that development assistance can be used as an effective policy tool for dampening the adverse effects of terrorism on trade. Practical implications are discussed. Moreover, steps or strategies that can be adopted by managers of corporations involved in international trade are provided, inter alia: (a) the improvement in physical security in high risky places, (b) the reduction of uncertainty linked with politically risky investment environments, (c) the reduction of costs associated with investments in locations that are very likely to be impacted by terrorism, (d) the role of security consultants and (e) the enhancement of security in networks.}, keywords = {Developing countries, Development, Exports, Foreign aid, terrorism}, pubstate = {published}, tppubtype = {article} } The study investigates whether development assistance can be used to crowd-out the negative effect of terrorism on international trade. The empirical evidence is based on a panel of 78 developing countries for the period 1984–2008 and quantile regressions. The following main findings are established. First, bilateral aid significantly reduces the negative effect of transnational terrorism on trade in the top quantiles of trade distribution. Second, multilateral aid also significantly mitigates the negative effect of terrorism dynamics on trade in the top quantiles of trade distributions. It follows that it is primarily in countries with above-median levels of international trade that development assistance can be used as an effective policy tool for dampening the adverse effects of terrorism on trade. Practical implications are discussed. Moreover, steps or strategies that can be adopted by managers of corporations involved in international trade are provided, inter alia: (a) the improvement in physical security in high risky places, (b) the reduction of uncertainty linked with politically risky investment environments, (c) the reduction of costs associated with investments in locations that are very likely to be impacted by terrorism, (d) the role of security consultants and (e) the enhancement of security in networks. |
6. | A., Efobi Beecroft Asongu U R I S Forum for Social Economics, 2018. Abstract | Links | BibTeX | Tags: FDI, Foreign aid, Quantile regression, terrorism @article{Asongu_370, author = {Efobi Beecroft U R I Asongu S. A.}, url = {http://www.tandfonline.com/doi/full/10.1080/07360932.2018.1434676}, doi = {10.1080/07360932.2018.1434676}, year = {2018}, date = {2018-02-18}, journal = {Forum for Social Economics}, abstract = {We investigate how foreign aid dampens the effects of terrorism on FDI using interactive quantile regressions. The empirical evidence is based on 78 developing countries for the period 1984–2008. Bilateral and multilateral aid variables are used, while terrorism dynamics entail: domestic, unclear, transnational and total number of terrorist attacks. The main finding is that foreign aid cannot be used as a policy tool to effectively address a hypothetically negative effect of terrorism on FDI. The positive threshold we cannot establish is important for policy makers because it communicates a cut-off point at which foreign aid completely neutralizes the negative effect of terrorism on FDI. From the conditioning information set, we also establish for the most part that the effects of GDP growth, infrastructural development and trade openness are an increasing function of FDI. Policy implications are discussed.}, keywords = {FDI, Foreign aid, Quantile regression, terrorism}, pubstate = {published}, tppubtype = {article} } We investigate how foreign aid dampens the effects of terrorism on FDI using interactive quantile regressions. The empirical evidence is based on 78 developing countries for the period 1984–2008. Bilateral and multilateral aid variables are used, while terrorism dynamics entail: domestic, unclear, transnational and total number of terrorist attacks. The main finding is that foreign aid cannot be used as a policy tool to effectively address a hypothetically negative effect of terrorism on FDI. The positive threshold we cannot establish is important for policy makers because it communicates a cut-off point at which foreign aid completely neutralizes the negative effect of terrorism on FDI. From the conditioning information set, we also establish for the most part that the effects of GDP growth, infrastructural development and trade openness are an increasing function of FDI. Policy implications are discussed. |
2017 |
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7. | A., & Ssozi Asongu J S International Economic Journal, 2017. Abstract | Links | BibTeX | Tags: Foreign aid, Quantile regression, terrorism @article{Asongu_436, author = {& Ssozi J Asongu S. A.}, url = {http://www.tandfonline.com/doi/full/10.1080/10168737.2017.1350731}, doi = {10.1080/10168737.2017.1350731}, year = {2017}, date = {2017-07-13}, journal = {International Economic Journal}, abstract = {Building on the previous literature, we assess when foreign aid is effective in fighting terrorism using quantile regressions on a panel of 78 developing countries for the period 1984–2008. Bilateral, multilateral and total aid indicators are used whereas terrorism includes: domestic, transnational, unclear and total terrorism dynamics. We consistently establish that foreign aid (bilateral, multilateral and total) is effective at fighting terrorism exclusively in countries where existing levels of transnational terrorism are highest. This finding is consistent with our theoretical underpinnings because donors have been documented to allocate more aid towards fighting transnational terrorist activities in recipient countries because they are more likely to target their interests. Moreover, the propensity of donor interest at stake is likely to increase with initial levels of transnational terrorism, such that the effect of foreign aid is most significant in recipient countries with the highest levels of transnational terrorism. Policy implications and future research directions are discussed.}, keywords = {Foreign aid, Quantile regression, terrorism}, pubstate = {published}, tppubtype = {article} } Building on the previous literature, we assess when foreign aid is effective in fighting terrorism using quantile regressions on a panel of 78 developing countries for the period 1984–2008. Bilateral, multilateral and total aid indicators are used whereas terrorism includes: domestic, transnational, unclear and total terrorism dynamics. We consistently establish that foreign aid (bilateral, multilateral and total) is effective at fighting terrorism exclusively in countries where existing levels of transnational terrorism are highest. This finding is consistent with our theoretical underpinnings because donors have been documented to allocate more aid towards fighting transnational terrorist activities in recipient countries because they are more likely to target their interests. Moreover, the propensity of donor interest at stake is likely to increase with initial levels of transnational terrorism, such that the effect of foreign aid is most significant in recipient countries with the highest levels of transnational terrorism. Policy implications and future research directions are discussed. |
8. | Kodila-Tedika, Simplice Asongu & Oasis International Journal of Development Issues, 16 (1), pp. 2-24, 2017. Abstract | Links | BibTeX | Tags: Development, Foreign aid, terrorism, Trade Openness @article{Asongu_475, author = {Simplice Asongu & Oasis Kodila-Tedika}, url = {http://www.emeraldinsight.com/doi/abs/10.1108/IJDI-08-2016-0046}, doi = {10.1108/IJDI-08-2016-0046}, year = {2017}, date = {2017-04-05}, journal = {International Journal of Development Issues}, volume = {16}, number = {1}, pages = {2-24}, abstract = {Purpose This paper aims to assess the role of foreign aid in reducing the hypothetically negative impact of terrorism on trade using a panel of 78 developing countries with data for the period 1984-2008. Design/methodology/approach The empirical evidence is based on interactive generalised method of moment estimations with forward orthogonal deviations. Bilateral, multilateral and total aid dynamics are used, whereas terrorism entails domestic, transnational, unclear and total terrorism dynamics. Findings The following findings have been established. First, while bilateral aid has no significant effect on trade, multilateral aid and total aid have positive impacts. Second total terrorism, domestic terrorism and transnational terrorism increase trade with increasing order of magnitude. Third, corresponding negative marginal effects on the interaction between foreign aid (bilateral and total) and terrorism display thresholds that are within range. Fourth, there is scant evidence of positive net effects. Overall, the findings broadly indicate that foreign aid is a necessary but not a sufficient policy tool for completely dampening the effects of terrorism on trade. Originality/value There is a growing policy interest in the relationship between terrorism and international development outcomes.}, keywords = {Development, Foreign aid, terrorism, Trade Openness}, pubstate = {published}, tppubtype = {article} } Purpose This paper aims to assess the role of foreign aid in reducing the hypothetically negative impact of terrorism on trade using a panel of 78 developing countries with data for the period 1984-2008. Design/methodology/approach The empirical evidence is based on interactive generalised method of moment estimations with forward orthogonal deviations. Bilateral, multilateral and total aid dynamics are used, whereas terrorism entails domestic, transnational, unclear and total terrorism dynamics. Findings The following findings have been established. First, while bilateral aid has no significant effect on trade, multilateral aid and total aid have positive impacts. Second total terrorism, domestic terrorism and transnational terrorism increase trade with increasing order of magnitude. Third, corresponding negative marginal effects on the interaction between foreign aid (bilateral and total) and terrorism display thresholds that are within range. Fourth, there is scant evidence of positive net effects. Overall, the findings broadly indicate that foreign aid is a necessary but not a sufficient policy tool for completely dampening the effects of terrorism on trade. Originality/value There is a growing policy interest in the relationship between terrorism and international development outcomes. |
9. | A, Nwachukwu Asongu J C S Journal of Economic Issues, 51 (1), pp. 201-221, 2017. Abstract | Links | BibTeX | Tags: Africa, Development, Foreign aid, political rights, uncertainty @article{Asongu_486, author = {Nwachukwu J C Asongu S. A}, url = {http://www.tandfonline.com/doi/full/10.1080/00213624.2017.1287510}, doi = {10.1080/00213624.2017.1287510}, year = {2017}, date = {2017-03-08}, journal = {Journal of Economic Issues}, volume = {51}, number = {1}, pages = {201-221}, abstract = {This article complements existing literature on the aid-institutions nexus by focusing on political rights, aid volatilities, and the post-Berlin Wall period. Our findings show that, while foreign aid does not have a significant effect on political rights, foreign aid volatilities do mitigate democracy in recipient countries. Such volatilities could be used by populist parties to promote a neocolonial agenda, instill nationalistic sentiments, and consolidate their grip on power. This is especially true when donors are asking for standards that the majority of the population in control does not want and political leaders are unwilling to implement them. Our empirical evidence is based on 53 African countries for the period from 1996 to 2010. As a main policy implication, creating uncertainties in foreign aid for political rights enhancement in African countries may achieve the opposite results. We also discuss other implications, including the need for an “After-Washington” Consensus.}, keywords = {Africa, Development, Foreign aid, political rights, uncertainty}, pubstate = {published}, tppubtype = {article} } This article complements existing literature on the aid-institutions nexus by focusing on political rights, aid volatilities, and the post-Berlin Wall period. Our findings show that, while foreign aid does not have a significant effect on political rights, foreign aid volatilities do mitigate democracy in recipient countries. Such volatilities could be used by populist parties to promote a neocolonial agenda, instill nationalistic sentiments, and consolidate their grip on power. This is especially true when donors are asking for standards that the majority of the population in control does not want and political leaders are unwilling to implement them. Our empirical evidence is based on 53 African countries for the period from 1996 to 2010. As a main policy implication, creating uncertainties in foreign aid for political rights enhancement in African countries may achieve the opposite results. We also discuss other implications, including the need for an “After-Washington” Consensus. |
2016 |
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10. | A, Nwachukwu Asongu J C S European Journal of Comparative Economics, 13 (2), pp. 221-246, 2016. Abstract | Links | BibTeX | Tags: Capital flight, Development, Foreign aid, Inequality, Piketty @article{Asongu_507, author = {Nwachukwu J C Asongu S. A}, url = {http://eaces.liuc.it/18242979201602/182429792016130204.pdf}, year = {2016}, date = {2016-12-23}, journal = {European Journal of Comparative Economics}, volume = {13}, number = {2}, pages = {221-246}, abstract = {An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed.}, keywords = {Capital flight, Development, Foreign aid, Inequality, Piketty}, pubstate = {published}, tppubtype = {article} } An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed. |