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Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia
As a recipient of Official Development Assistance (ODA), the Republic of Zambia is considered one of the aid-dependent nations in Sub-Saharan Africa. Development assistance has been said to have had made absolutely no contribution to economic growth and development in the country on observation of t...
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| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2021
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| _version_ | 1867613162677731328 |
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| access_status_str | Open Access |
| author | Nsomi-Mukuka, Nonde |
| author2 | Alhassan, Abdul Latif |
| author_browse | Alhassan, Abdul Latif Nsomi-Mukuka, Nonde |
| author_facet | Alhassan, Abdul Latif Nsomi-Mukuka, Nonde |
| author_sort | Nsomi-Mukuka, Nonde |
| collection | Thesis |
| description | As a recipient of Official Development Assistance (ODA), the Republic of Zambia is considered one of the aid-dependent nations in Sub-Saharan Africa. Development assistance has been said to have had made absolutely no contribution to economic growth and development in the country on observation of the Gross Domestic Product (GDP) per capita figure over the years which indicates periods of stagnation in growth despite ODA receipts. Generally, this conclusion has in the past been drawn without consideration for, and appreciation of, the variations in the objectives and disbursement channels of ODA. Consequently, this study sought to investigate the separate impact of multilateral and bilateral ODA on GDP per capita which served as a proxy for economic growth and development in Zambia. Based on a modified neo-classical economic growth model that incorporates multilateral and bilateral ODA as determinants of economic growth, this study employed the ARDL model to investigate the long-run and short-run relationship between GDP per capita and ODA from 1975 to 2016. Two similar growth models were analysed substituting the net ODA variable with multilateral and bilateral ODA in order to assess the relationship. In addition to net ODA, the model included the variables investment, trade openness and the labour force as determinants of economic growth. Findings from the study show that multilateral ODA had a significant negative impact on GDP per capita, while the bilateral ODA model showed a statistically insignificant negative relationship. The findings of the study support the notion that different types of foreign aid cannot be expected to have a uniform impact on growth and development in terms of effectiveness. The recommendations point to the importance of re-evaluation of modalities by donors to ensure that development assistance is more effective in achieving sustainable development goals. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/32896 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:31:45.395Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/32896 Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia Nsomi-Mukuka, Nonde Alhassan, Abdul Latif Official Development Assistance Zambia Sub-Saharan Africa As a recipient of Official Development Assistance (ODA), the Republic of Zambia is considered one of the aid-dependent nations in Sub-Saharan Africa. Development assistance has been said to have had made absolutely no contribution to economic growth and development in the country on observation of the Gross Domestic Product (GDP) per capita figure over the years which indicates periods of stagnation in growth despite ODA receipts. Generally, this conclusion has in the past been drawn without consideration for, and appreciation of, the variations in the objectives and disbursement channels of ODA. Consequently, this study sought to investigate the separate impact of multilateral and bilateral ODA on GDP per capita which served as a proxy for economic growth and development in Zambia. Based on a modified neo-classical economic growth model that incorporates multilateral and bilateral ODA as determinants of economic growth, this study employed the ARDL model to investigate the long-run and short-run relationship between GDP per capita and ODA from 1975 to 2016. Two similar growth models were analysed substituting the net ODA variable with multilateral and bilateral ODA in order to assess the relationship. In addition to net ODA, the model included the variables investment, trade openness and the labour force as determinants of economic growth. Findings from the study show that multilateral ODA had a significant negative impact on GDP per capita, while the bilateral ODA model showed a statistically insignificant negative relationship. The findings of the study support the notion that different types of foreign aid cannot be expected to have a uniform impact on growth and development in terms of effectiveness. The recommendations point to the importance of re-evaluation of modalities by donors to ensure that development assistance is more effective in achieving sustainable development goals. 2021-02-18T11:56:43Z 2021-02-18T11:56:43Z 2020 2021-02-18T11:56:28Z Master Thesis Masters MBA http://hdl.handle.net/11427/32896 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Official Development Assistance Zambia Sub-Saharan Africa Nsomi-Mukuka, Nonde Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia |
| thesis_degree_str | Master's |
| title | Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia |
| title_full | Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia |
| title_fullStr | Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia |
| title_full_unstemmed | Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia |
| title_short | Evaluating the impact of bilateral and multilateral official development assistance on economic growth in Zambia |
| title_sort | evaluating the impact of bilateral and multilateral official development assistance on economic growth in zambia |
| topic | Official Development Assistance Zambia Sub-Saharan Africa |
| url | http://hdl.handle.net/11427/32896 |
| work_keys_str_mv | AT nsomimukukanonde evaluatingtheimpactofbilateralandmultilateralofficialdevelopmentassistanceoneconomicgrowthinzambia |