Fragile States and Aid Allocation for Sub-Saharan African Countries: An Empirical Research

Authors : Zeynep Arıöz, Derya Topdağ

Pages : 45-59

Doi:10.33458/uidergisi.1371674

View : 158 | Download : 297

Publication Date : 2024-03-14

Article Type : Research Paper

Abstract :State fragility has received increasing attention in recent decades as a result of the nexus between development and international stability. This study investigates the empirical drivers of state fragility in sub-Saharan Africa from 2007 to 2019. We shed light on the explanatory variables of government effectiveness, political stability, per-capita GDP, grow GDP%, International Monetary Fund loans, and official development assistance. Using panel data analysis and a 39-country sample, our study finds that government efficiency and political stability, in contrast to foreign aid, has a significant effect on reducing fragility in sub-Saharan Africa. In light of these findings, the article proposes delivering foreign aid in ways that strengthen state capacity.
Keywords : Fragility, Foreign Aid, International Institutions, Panel Data Econometrics, Robust Standard Errors