Reassessing the Efficacy of Foreign Aid and Grants in Poverty Reduction in Nigeria Author(s):

Asian Economic and Financial Review

Tersoo Shimonkabir SHITILE^1¹ 

[1]Central Bank of Nigeria and Economics Department, Nile University of Nigeria. Department of Economics, Kogi State University, Nigeria^1

关键词: Foreign aid and grants;    Technical cooperation grants Official development assistance;    Poverty reduction;    Empirical studies of economic growth;    Autoregressive distributed lag;    Nigeria.;   

DOI  :  10.18488/journal.aefr.2019.94.450.460

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study re-examines the efficacy of foreign aid and grants on poverty reduction in Nigeria using time series data covering the period of 1999 to 2017. To perform the inquiry, the paper focus on disaggregated data for the analysis of foreign aid and grants, that is, technical cooperation grants (TCG), official development assistance (ODA) and other grants. Grounded on the Great Big Push theoretical framework, the study tested the marginal effect of TCG, ODA and other grants on poverty incidence in Nigeria using the Autoregressive Distributed Lag (ARDL) bounds testing approach. The empirical findings show that TCG and ODA have positive but insignificant impact on national poverty incidence in the short-term horizon; however, in the long-term, the effect of TCG and ODA on poverty incidence is negative. This finding suggests that the plausibility of poverty reduction policy based on external aid and grants is contestable. This affirms the argument that externally nominated solutions in form of foreign aid and grants do not connect with locally defined problems in poverty reduction.

【 授权许可】

CC BY