Original Research

Foreign aid and poverty reduction in sub-Saharan Africa: A cross-country investigation

GT Ijaiya, MA Ijaiya
South African Journal of Economic and Management Sciences | Vol 7, No 3 | a1364 | DOI: https://doi.org/10.4102/sajems.v7i3.1364 | © 2004 GT Ijaiya, MA Ijaiya | This work is licensed under CC Attribution 4.0
Submitted: 08 April 2004 | Published: 08 April 2004

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GT Ijaiya, University of Ilorin. Ilorin, Nigeria
MA Ijaiya, University of Ilorin. Ilorin, Nigeria

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Abstract

The continuous increase in the rate of poverty in Sub-Saharan Africa can be linked to the inadequate management and use of international financial assistance such as foreign aid. Using a cross-country data, this paper examines the relationship between foreign aid and poverty reduction in Sub-Saharan Africa (SSA). The result obtained indicates that foreign aid has no significant influence on poverty reduction in SSA, because of the countries’ weak economic management evidenced by high levels of corruption, bad governance, and political and economic instability. To improve the performance of foreign aid directed at poverty reduction, the paper suggests the implementation of measures directed at good governance, macroeconomic and political stability.Incentives in Nigeria’s food manufacturing industries and their impact on output and prices

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