The effect of different foms on aid on human development in Sub-Sahara Africa

Abstract

This thesis empirically studies the effect of World Bank aid and Chinese aid on human development in Sub-Saharan Africa. It distinguishes itself from the current literature on aid and growth in several ways. Firstly, this thesis is conducted at the regional level. Secondly, growth effects of human development are of interest here, rather than only economic growth. Thirdly, the hypothesis that different forms of aid might affect each other is tested here. It is obtained that the effects of aid depend on how the model is specified. Additionally, this thesis finds that although World Bank aid and Chinese aid could be complementary, competition between donors has negative consequences for aid effectiveness. Furthermore, ODA-like Chinese aid is less effective than total Chinese aid.