An aggregate agricultural production function (a pooled covariance model) based on the metaproduction approach, was estimated using cross section, time series data for 32 countries in Sub-Saharan Africa (SSA) covering the 1970-1993 period to evaluate the effect of foreign aid on agricultural production. The Almon lag structure of the foreign aid (Official Development Assistance) variable was specified to account for the effect of foreign aid over time. The results support the hypothesis that the aggregate effect of aid on agricultural production in SSA is positive. The marginal effect of foreign aid in SSA is calculated to be $0.14 which can be interpreted to mean that a one dollar increase in aid in each of the past six years would be expected to increase the value of agricultural output by 14 cents in the current year. / There is a great variation in the effect of foreign aid on agricultural production when countries are classified according to agro-climatic region, income level and policy environment. Excluding Eastern and Southern Africa where the effect of aid is negative, the marginal effect of foreign aid ranges from $0.40 in Sudano-Sahel to $1.32 in Central Africa. The marginal effect of foreign aid is larger in middle income countries as compared to high income countries; it is negative in low income countries. The effect of aid is positive and significant in countries classified under a favourable policy environment but negative and insignificant in countries classified under an unfavourable policy environment. The structural adjustment dummy variable is positive and significant in most regressions indicating that structural adjustment programs have been beneficial to agriculture in most Sub-Saharan African countries.
| Identifer | oai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.24007 |
| Date | January 1996 |
| Creators | Gichenje, Helene. |
| Contributors | Gunjal, Kisan (advisor) |
| Publisher | McGill University |
| Source Sets | Library and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada |
| Language | English |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Format | application/pdf |
| Coverage | Master of Science (Department of Agricultural Economics.) |
| Rights | All items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated. |
| Relation | alephsysno: 001536157, proquestno: MM19816, Theses scanned by UMI/ProQuest. |
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