Foreign aid aims to improve economic conditions and quality of life in developing countries. The literature on the efficacy of foreign aid to date has been inconclusive; yet there is some evidence that institutional factors may condition the relationship between aid and development. This research focuses on the effects of foreign aid on development, taking into consideration the effects of political institutional factors as intervening in the connection between aid and development. Specifically, this study considers the effects of democracy (political rights and civil liberties) and level of corruption on the relationship between aid and development in sub-Saharan Africa. Development is determined by the Human Development Index, which takes into account gross national income, life expectancy, and education level. My findings indicate that aid is ineffective at promoting development in sub-Saharan Africa. Additionally, it is found that democracy, as determined by level of political freedom, is positively associated to development in aid recipient countries. HIV prevalence rate, the location of the country relative to the coastline, and percent of arable land were found to be significant factors affecting development. The level of corruption and political stability do not have a significant effect on development. The study is conducted using a cross-national, longitudinal, statistical model. The impact of foreign aid on development is examined for 45 countries over a fourteen-year period, from 1995 to 2009. The results of the study show that foreign aid has a negative effect on development, yet development is affected by level of democracy, geographical location, percent of arable land, and HIV prevalence rate. Development is higher in countries located on the coastline, with a higher percentage of arable land, a higher level of democracy, and a higher rate of HIV.
| Identifer | oai:union.ndltd.org:ucf.edu/oai:stars.library.ucf.edu:etd-3040 |
| Date | 01 January 2011 |
| Creators | Gray, Rachael J |
| Publisher | STARS |
| Source Sets | University of Central Florida |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | Electronic Theses and Dissertations |
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