Aid efficiency in the socio-political instability context of Burundi : a Granger causality approach, pp. 134-148, Cahiers du CURDES
No Thumbnail Available
Date
Journal Title
Journal ISSN
Volume Title
Publisher
UB, Cahiers du CURDES
Abstract
Description
In the last years, Burundi has become increasingly dependent on foreign aid has external investment to its economy, but as this country crossed a crucial periods of civil war, this paper attempts to gauge the determinants of efficiency of aid during the socio-political instability from 1990-2005. The time series data are drawn from various sources. The co-integration approach is applied in this study. From the empirics, it came out clearly that on hand, the foreign aid has an slightly positive effect on economic growth but a highly insignificant on the child mortality rate during this straining civil war; on the hand socio-political stability has a positively significant on child mortality rate but not on economic growth. We recommend that security, good governance and decentralised political governance are the prerequisite for the efficiency of foreign aid.