Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ

Okon Umoh; Kenneth Onye

doi:doi:10.11648/j.jwer.20160505.11

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Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ

Okon Umoh, Kenneth Onye

Published in Journal of World Economic Research (Volume 5, Issue 5)

Received: 17 July 2016 Accepted: 9 August 2016 Published: 7 September 2016

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Abstract

West African countries are caught in a structural Poverty trap due to severe underdevelopment of their productive forces, compounded by an unfavorable international environment and lack of genuine commitment on the part of affluent countries to assist them. Despite rising income among these countries, inequality and poverty incidence seems to be rising. Of course, they could be greatly assisted through effective international actions. This paper investigates the contributions of FDI and aid in accelerating the development of WAMZ member countries. The paper relies on both the Fixed Effect and Dynamic Arellano-Bond GMM Panel Data regression frameworks to show that aid contributes powerfully to both human development and economic growth while FDI, at best, has no effect on economic growth and actually slows the rate of human development in WAMZ. The higher the level of human capital in a country, the more aid contributes to growth and development. On the basis of our findings, WAMZ require aid for inclusive development but not necessarily FDI.

Published in	Journal of World Economic Research (Volume 5, Issue 5)
DOI	10.11648/j.jwer.20160505.11
Page(s)	43-58
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Inclusive Development, Aid, FDI, WAMZ, A-B Dynamic Panel Data

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APA Style

Okon Umoh, Kenneth Onye. (2016). Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ. Journal of World Economic Research, 5(5), 43-58. https://doi.org/10.11648/j.jwer.20160505.11

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ACS Style

Okon Umoh; Kenneth Onye. Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ. J. World Econ. Res. 2016, 5(5), 43-58. doi: 10.11648/j.jwer.20160505.11

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AMA Style

Okon Umoh, Kenneth Onye. Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ. J World Econ Res. 2016;5(5):43-58. doi: 10.11648/j.jwer.20160505.11

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@article{10.11648/j.jwer.20160505.11,
  author = {Okon Umoh and Kenneth Onye},
  title = {Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ},
  journal = {Journal of World Economic Research},
  volume = {5},
  number = {5},
  pages = {43-58},
  doi = {10.11648/j.jwer.20160505.11},
  url = {https://doi.org/10.11648/j.jwer.20160505.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20160505.11},
  abstract = {West African countries are caught in a structural Poverty trap due to severe underdevelopment of their productive forces, compounded by an unfavorable international environment and lack of genuine commitment on the part of affluent countries to assist them. Despite rising income among these countries, inequality and poverty incidence seems to be rising. Of course, they could be greatly assisted through effective international actions. This paper investigates the contributions of FDI and aid in accelerating the development of WAMZ member countries. The paper relies on both the Fixed Effect and Dynamic Arellano-Bond GMM Panel Data regression frameworks to show that aid contributes powerfully to both human development and economic growth while FDI, at best, has no effect on economic growth and actually slows the rate of human development in WAMZ. The higher the level of human capital in a country, the more aid contributes to growth and development. On the basis of our findings, WAMZ require aid for inclusive development but not necessarily FDI.},
 year = {2016}
}

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TY  - JOUR
T1  - Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ
AU  - Okon Umoh
AU  - Kenneth Onye
Y1  - 2016/09/07
PY  - 2016
N1  - https://doi.org/10.11648/j.jwer.20160505.11
DO  - 10.11648/j.jwer.20160505.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 43
EP  - 58
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20160505.11
AB  - West African countries are caught in a structural Poverty trap due to severe underdevelopment of their productive forces, compounded by an unfavorable international environment and lack of genuine commitment on the part of affluent countries to assist them. Despite rising income among these countries, inequality and poverty incidence seems to be rising. Of course, they could be greatly assisted through effective international actions. This paper investigates the contributions of FDI and aid in accelerating the development of WAMZ member countries. The paper relies on both the Fixed Effect and Dynamic Arellano-Bond GMM Panel Data regression frameworks to show that aid contributes powerfully to both human development and economic growth while FDI, at best, has no effect on economic growth and actually slows the rate of human development in WAMZ. The higher the level of human capital in a country, the more aid contributes to growth and development. On the basis of our findings, WAMZ require aid for inclusive development but not necessarily FDI.
VL  - 5
IS  - 5
ER  -

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Author Information

Okon Umoh

Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria
Kenneth Onye

Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria

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APA Style

Okon Umoh, Kenneth Onye. (2016). Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ. Journal of World Economic Research, 5(5), 43-58. https://doi.org/10.11648/j.jwer.20160505.11

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ACS Style

Okon Umoh; Kenneth Onye. Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ. J. World Econ. Res. 2016, 5(5), 43-58. doi: 10.11648/j.jwer.20160505.11

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AMA Style

Okon Umoh, Kenneth Onye. Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ. J World Econ Res. 2016;5(5):43-58. doi: 10.11648/j.jwer.20160505.11

Copy | Download

@article{10.11648/j.jwer.20160505.11,
  author = {Okon Umoh and Kenneth Onye},
  title = {Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ},
  journal = {Journal of World Economic Research},
  volume = {5},
  number = {5},
  pages = {43-58},
  doi = {10.11648/j.jwer.20160505.11},
  url = {https://doi.org/10.11648/j.jwer.20160505.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20160505.11},
  abstract = {West African countries are caught in a structural Poverty trap due to severe underdevelopment of their productive forces, compounded by an unfavorable international environment and lack of genuine commitment on the part of affluent countries to assist them. Despite rising income among these countries, inequality and poverty incidence seems to be rising. Of course, they could be greatly assisted through effective international actions. This paper investigates the contributions of FDI and aid in accelerating the development of WAMZ member countries. The paper relies on both the Fixed Effect and Dynamic Arellano-Bond GMM Panel Data regression frameworks to show that aid contributes powerfully to both human development and economic growth while FDI, at best, has no effect on economic growth and actually slows the rate of human development in WAMZ. The higher the level of human capital in a country, the more aid contributes to growth and development. On the basis of our findings, WAMZ require aid for inclusive development but not necessarily FDI.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Financing Inclusive Development Through Aid and FDI: The Empirical Case of WAMZ
AU  - Okon Umoh
AU  - Kenneth Onye
Y1  - 2016/09/07
PY  - 2016
N1  - https://doi.org/10.11648/j.jwer.20160505.11
DO  - 10.11648/j.jwer.20160505.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 43
EP  - 58
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20160505.11
AB  - West African countries are caught in a structural Poverty trap due to severe underdevelopment of their productive forces, compounded by an unfavorable international environment and lack of genuine commitment on the part of affluent countries to assist them. Despite rising income among these countries, inequality and poverty incidence seems to be rising. Of course, they could be greatly assisted through effective international actions. This paper investigates the contributions of FDI and aid in accelerating the development of WAMZ member countries. The paper relies on both the Fixed Effect and Dynamic Arellano-Bond GMM Panel Data regression frameworks to show that aid contributes powerfully to both human development and economic growth while FDI, at best, has no effect on economic growth and actually slows the rate of human development in WAMZ. The higher the level of human capital in a country, the more aid contributes to growth and development. On the basis of our findings, WAMZ require aid for inclusive development but not necessarily FDI.
VL  - 5
IS  - 5
ER  -

Copy | Download