Publications

April 27, 2011

Testing The Impact Of Foreign Aid And Aid Uncertainty On Private Investment In West Africa

The paper examines the impact
of foreign aid on private investment in West Africa and whether multilateral and
bilateral aid affects private investment differently.

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Author:Eberechukwu Uneze

Publication Date:September, 2010

JEL Classification: E22; F35; C33

Key words: Foreign Aid; Investment; Fixed Effects

Document Size: 24 pages


Drawing on the vast literature on aid allocation this paper examines whether foreign aid has anyimpact on private investment in West Africa when other determinants of private investment aretaken into account. Following from this, the paper investigates whether multilateral aid andbilateral aid affect private investment differently. In a related analysis the paper examines theimpact of aid uncertainty on private investment. The results show that multilateral aid affectsprivate investment positively, but not bilateral aid, and uncertainty, measured as the coefficientof variation has a negative impact on private investment and therefore reduces the impact of aidon domestic private investment.




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Nigeria Economic Update (Issue 24)

Crude oil price increased, in the week under review, to its highest price in 2016. Nigerias bonny light increased by $1.38 from $48.02 per barrel on May 20, 2016 to $49.64 per barrel on May 27, 2016, while Brent crude was sold for $50 per barrel on May 26, 2016. The catalyst for price gains in the period under review is the supply-side contractions, with unplanned production shortages in Nigeria, Canada and Iraq. The upward trend of prices may unlock more supplies in subsequent weeks, but the OPEC meeting scheduled for June 2, 2016, could moderate the effect. Nigeria is expected to benefit from crude oil price rising above the $38 per barrel benchmark. Unfortunately, supply disruptions continue to negatively affect oil revenue and may have contributed to the depletion of external reserve by over $153 millionthis week. The federal government, in collaboration with relevant security agencies, should find a lasting solution to the vandalism of oil pipelines and production facilities.