Effects of Foreign Aid on Ghana's Economic Development
Samuel Bangura
Abstract
This paper examines the impact of foreign aid on Ghana's economic development, exploring both positive and negative aspects of aid inflows. Ghana, like many other developing nations, has been a recipient of foreign aid aimed at fostering economic growth, poverty reduction, and sustainable development. The paper analyses the historical context of foreign aid to Ghana, evaluates the effectiveness of aid programs, and considers the potential challenges associated with aid dependency. By synthesizing existing literature and empirical evidence, this study aims to provide a comprehensive understanding of the nuanced relationship between foreign aid and economic development in Ghana.
Keywords
Foreign aid; Ghana; Economic development; Structural Adjustment Programs;
Governance; Poverty reduction; Aid dependency
References
Addison, T., & Tarp, F. (2016). Aid and Income: Another Time Series Perspective. World
Development, 78, 104-120. DOI: 10.1016/j.worlddev.2015.09.001
Agyeman-Duah, I. (2002). Between faith and history: towards the true story of Ghana's national
reconciliation. African Journal of Political Science and International Relations, 10(4),
34-46
Alesina, A & Dollar, D. (2000). Who Gives Foreign Aid to Whom and why? Journal of
Economic Growth 5(1), 33-63. DOI: 10.1023/A:1009874203400
Ansah, P. (2017). The changing dynamics of foreign aid in Africa: a comparative study of
Ghana and China relations.
Aryeetey, E., & Gockel, F. (2008). The Impact of Foreign Aid on Economic Growth and
Development in Africa: A Case Study of Ghana. African Economic Research
Consortium (AERC) Research Paper, 178.
Ayee, J. R. A. (1999). Donors and decision-making in Ghana: Lessons for African
development. African Journal of Political Science / Revue Africaine de Science
Politique, 6(1), pp. 1-41. https://www.jstor.org/stable/23495258.
Bigsten, A. & Levin, J (2001). Growth, Income Distribution, and Poverty: A Review. DOI:
10.1093/0199268657.003.0012.
Blomström and Kokko (2003). The Economics of Foreign Direct Investment Incentives. DOI:
10.1007/978-3-540-24736-4_3
Bokpin A. G & Osei A. A (2009). Foreign Aid and Economic Growth in Ghana: A Cointegration
Approach.
Boone, P. (1996). Politics and the Effectiveness of Foreign Aid. European Economic Review,
40(2), 289-329. DOI: 10.1016/0014-2921(95)00032-0.
Boone (1996). Service Quality in a Research University: A Post-Graduate Perspective Procedia
Social and Behavioral Sciences 29(1):1830-1838. DOI: 10.1016/j.sbspro.2011.11.431
Bräutigam (2009). The Dragon's Gift: The Real Story of China in Africa. Oxford: Oxford
University Press. Browne (2006). Toward a Critical Theoretical Interpretation of Social
Justice Discourses in Nursing Advances in Nursing Science 29(4), 324-39l. DOI:
10.1097/00012272-200610000-00006
Craig B. & Dollar D. (2004). Aid, Policies, and Growth: Comment. Pp.1-35.
Darkoh, M. B. K. (1995). Structural Adjustment Programs in Africa: A Case Study of Ghana.
Pp.6-9.
Dercon, S & Gollin's, D. (2014). Agriculture in African Development: Theories and Strategies
Annual Review of Resource Economics, 6(1), 471-492.
Devarajan et al. (2005). Aid and reform in Africa: Lessons from Ten Case Studies. World Bank
Publications. 696 pages.
Duflo (2017). Field Experiments and the Practice of Policy. American Economic Review,
110(7), 1952-1973
Easterly (2006). The White Man's Burden: Why the West's Efforts to Aid the Rest have Done
so Much Ill and so Little Good.
Easterly, W., & Williamson, C. R. (2011). Rhetoric versus reality: the best and worst of aid
agency practices. SSRN Electronic Journal. DOI: 10.2139/ssrn.2496716
Eicher T. & Morrissey O. (2009): Foreign Aid in Ghana: Does Aid Composition Matter?
Elbadawi I & Mengistae T. (2007). Foreign Aid and Economic Development in Africa: The
Case of Ghana. Journal of African Studies and Development, 1(1). 008-015.
Glewwe, P & Kremer, M. (2006). Chapter 16 Schools, Teachers, and Education Outcomes in
Developing Countries. Handbook of the Economics of Education, 2, 945-1017.
DOI:10.1016/S1574-0692(06)02016-2
Gyimah-Brempong, K & Racine, S. J. (2015). Alcohol availability and crime: A robust
approach. Applied Economics, 38(11), 1293-1307. DOI: 10.1080/00036840500398869
Gupta, S., Clements, B., Pivovarsky, A., & Tiongson, E. (2003). Foreign Aid and Revenue
Response: Does the Composition of Aid Matter? IMF Working Paper, 03/176.
Gupta et al. (2004). Entrepreneurial Leadership: Developing and Measuring a Cross-Cultural
Construct. Journal of Business Venturing, 19(2):241-260. DOI: 10.1016/S0883-
9026(03)00040-5.
Hansen, H., & Tarp, F. (2000). Aid Effectiveness Disputed. Journal of International
Development, 12(3), 375-398. DOI: 10.1002/1099-1328(200004)12:3<375: AID-
JID673>3.0.CO;2-S
Harford and Klein (2005). The Future of Aid 2: The Big Push. World Bank Publications. 150
pages. 0821362283.
Hudson, J., & Mosley, P. (2001). Aid Policies and Growth: In Search of the Holy Grail. Journal
of International Development, 13(7), 1023-1038. DOI: 10.1002/jid.836
Lancaster, C. (2007). Foreign Aid: Diplomacy, Development, Domestic Politics. University of
Chicago Press.
Moss et al. (2006). CPT-Based Probabilistic Assessment of Seismic Soil Liquefaction
Initiation.
Moyo (2009). Dead aid: Why aid is not working and how there is a better way for Africa.
Global Public Health, 5(2), 1-2. DOI: 10.1080/17441690903369469
Osei-Assibey, E. & Ackah (2018). What drives behavioral intention of mobile money adoption?
The case of ancient susu saving operations in Ghana. International Journal of Social
Economics, 42(11), 962-
DOI: 10.1108/IJSE-09-2013-0199
Radelet S. (2006). Aid Effectiveness in Africa: Developing Trust between Donors
Governments. African Development Review, 20(2), 163-199. DOI: 10.1111/j.1467-
8268.2008. 00181.x
Rajan, R. S., & Subramanian, A. (2008). Aid and Growth: What Does the Cross-Country
Evidence Real Show? Review of Economics and Statistics, 90(4), 643-665.
DOI:10.1162/rest.90.4.643
Tetteh-Baah, S. K. (2008). Aid Allocation and Aid Effectiveness: The Nexus between Aid
Policies and Economic Growth in Ghana. Africa Development, 33(1), 25-47.
World Bank. (2020). Ghana Development Update: The Changing Nature of Work. World Bank.
[Online Document] URL: https://openknowledge.worldbank.org/handle/10986/33516
View publication stats
Development, 78, 104-120. DOI: 10.1016/j.worlddev.2015.09.001
Agyeman-Duah, I. (2002). Between faith and history: towards the true story of Ghana's national
reconciliation. African Journal of Political Science and International Relations, 10(4),
34-46
Alesina, A & Dollar, D. (2000). Who Gives Foreign Aid to Whom and why? Journal of
Economic Growth 5(1), 33-63. DOI: 10.1023/A:1009874203400
Ansah, P. (2017). The changing dynamics of foreign aid in Africa: a comparative study of
Ghana and China relations.
Aryeetey, E., & Gockel, F. (2008). The Impact of Foreign Aid on Economic Growth and
Development in Africa: A Case Study of Ghana. African Economic Research
Consortium (AERC) Research Paper, 178.
Ayee, J. R. A. (1999). Donors and decision-making in Ghana: Lessons for African
development. African Journal of Political Science / Revue Africaine de Science
Politique, 6(1), pp. 1-41. https://www.jstor.org/stable/23495258.
Bigsten, A. & Levin, J (2001). Growth, Income Distribution, and Poverty: A Review. DOI:
10.1093/0199268657.003.0012.
Blomström and Kokko (2003). The Economics of Foreign Direct Investment Incentives. DOI:
10.1007/978-3-540-24736-4_3
Bokpin A. G & Osei A. A (2009). Foreign Aid and Economic Growth in Ghana: A Cointegration
Approach.
Boone, P. (1996). Politics and the Effectiveness of Foreign Aid. European Economic Review,
40(2), 289-329. DOI: 10.1016/0014-2921(95)00032-0.
Boone (1996). Service Quality in a Research University: A Post-Graduate Perspective Procedia
Social and Behavioral Sciences 29(1):1830-1838. DOI: 10.1016/j.sbspro.2011.11.431
Bräutigam (2009). The Dragon's Gift: The Real Story of China in Africa. Oxford: Oxford
University Press. Browne (2006). Toward a Critical Theoretical Interpretation of Social
Justice Discourses in Nursing Advances in Nursing Science 29(4), 324-39l. DOI:
10.1097/00012272-200610000-00006
Craig B. & Dollar D. (2004). Aid, Policies, and Growth: Comment. Pp.1-35.
Darkoh, M. B. K. (1995). Structural Adjustment Programs in Africa: A Case Study of Ghana.
Pp.6-9.
Dercon, S & Gollin's, D. (2014). Agriculture in African Development: Theories and Strategies
Annual Review of Resource Economics, 6(1), 471-492.
Devarajan et al. (2005). Aid and reform in Africa: Lessons from Ten Case Studies. World Bank
Publications. 696 pages.
Duflo (2017). Field Experiments and the Practice of Policy. American Economic Review,
110(7), 1952-1973
Easterly (2006). The White Man's Burden: Why the West's Efforts to Aid the Rest have Done
so Much Ill and so Little Good.
Easterly, W., & Williamson, C. R. (2011). Rhetoric versus reality: the best and worst of aid
agency practices. SSRN Electronic Journal. DOI: 10.2139/ssrn.2496716
Eicher T. & Morrissey O. (2009): Foreign Aid in Ghana: Does Aid Composition Matter?
Elbadawi I & Mengistae T. (2007). Foreign Aid and Economic Development in Africa: The
Case of Ghana. Journal of African Studies and Development, 1(1). 008-015.
Glewwe, P & Kremer, M. (2006). Chapter 16 Schools, Teachers, and Education Outcomes in
Developing Countries. Handbook of the Economics of Education, 2, 945-1017.
DOI:10.1016/S1574-0692(06)02016-2
Gyimah-Brempong, K & Racine, S. J. (2015). Alcohol availability and crime: A robust
approach. Applied Economics, 38(11), 1293-1307. DOI: 10.1080/00036840500398869
Gupta, S., Clements, B., Pivovarsky, A., & Tiongson, E. (2003). Foreign Aid and Revenue
Response: Does the Composition of Aid Matter? IMF Working Paper, 03/176.
Gupta et al. (2004). Entrepreneurial Leadership: Developing and Measuring a Cross-Cultural
Construct. Journal of Business Venturing, 19(2):241-260. DOI: 10.1016/S0883-
9026(03)00040-5.
Hansen, H., & Tarp, F. (2000). Aid Effectiveness Disputed. Journal of International
Development, 12(3), 375-398. DOI: 10.1002/1099-1328(200004)12:3<375: AID-
JID673>3.0.CO;2-S
Harford and Klein (2005). The Future of Aid 2: The Big Push. World Bank Publications. 150
pages. 0821362283.
Hudson, J., & Mosley, P. (2001). Aid Policies and Growth: In Search of the Holy Grail. Journal
of International Development, 13(7), 1023-1038. DOI: 10.1002/jid.836
Lancaster, C. (2007). Foreign Aid: Diplomacy, Development, Domestic Politics. University of
Chicago Press.
Moss et al. (2006). CPT-Based Probabilistic Assessment of Seismic Soil Liquefaction
Initiation.
Moyo (2009). Dead aid: Why aid is not working and how there is a better way for Africa.
Global Public Health, 5(2), 1-2. DOI: 10.1080/17441690903369469
Osei-Assibey, E. & Ackah (2018). What drives behavioral intention of mobile money adoption?
The case of ancient susu saving operations in Ghana. International Journal of Social
Economics, 42(11), 962-
DOI: 10.1108/IJSE-09-2013-0199
Radelet S. (2006). Aid Effectiveness in Africa: Developing Trust between Donors
Governments. African Development Review, 20(2), 163-199. DOI: 10.1111/j.1467-
8268.2008. 00181.x
Rajan, R. S., & Subramanian, A. (2008). Aid and Growth: What Does the Cross-Country
Evidence Real Show? Review of Economics and Statistics, 90(4), 643-665.
DOI:10.1162/rest.90.4.643
Tetteh-Baah, S. K. (2008). Aid Allocation and Aid Effectiveness: The Nexus between Aid
Policies and Economic Growth in Ghana. Africa Development, 33(1), 25-47.
World Bank. (2020). Ghana Development Update: The Changing Nature of Work. World Bank.
[Online Document] URL: https://openknowledge.worldbank.org/handle/10986/33516
View publication stats
