<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research background:</bold> Foreign aid flows to Africa mostly the Low-Income Countries (LICs) have increased drastically since 2000. Increasing aid flows are expected to stimulate economic growth that can release resources towards enabling LICs to reduce aid dependency.<bold>Purpose:</bold> The purpose of this study is to discuss the dynamics of bilateral aid trends and patterns among 27 LICs in Africa during 2000–2017. The main question this study tries to answer is: how have aid sources, compositions and dependency changed in LICs?<bold>Research methodology:</bold> The study employs a descriptive analysis technique to analyses bilateral aid flows to LICs in Africa from 50 donors during 2000–2017.<bold>Results:</bold> Total net aid flows to LICs increased by 1.5 times during 2000–2017 and were predominantly in the form of grants (92.7%). The study found a shift of sectoral aid allocations from the economic and productive sectors towards the social sector. Net aid as a share of GDP increased almost two-fold; implying an increasing trend of aid dependency in several LICs.<bold>Novelty:</bold> This study tries to present a full account of bilateral aid flows both from Traditional Donors (TDs) and Non-Traditional Donors (NTDs), unlike many earlier studies that have focused on TDs.</abstract>

Research background: Foreign aid flows to Africa mostly the Low-Income Countries (LICs) have increased drastically since 2000. Increasing aid flows are expected to stimulate economic growth that can release resources towards enabling LICs to reduce aid dependency.Purpose: The purpose of this study is to discuss the dynamics of bilateral aid trends and patterns among 27 LICs in Africa during 2000–2017. The main question this study tries to answer is: how have aid sources, compositions and dependency changed in LICs?Research methodology: The study employs a descriptive analysis technique to analyses bilateral aid flows to LICs in Africa from 50 donors during 2000–2017.Results: Total net aid flows to LICs increased by 1.5 times during 2000–2017 and were predominantly in the form of grants (92.7%). The study found a shift of sectoral aid allocations from the economic and productive sectors towards the social sector. Net aid as a share of GDP increased almost two-fold; implying an increasing trend of aid dependency in several LICs.Novelty: This study tries to present a full account of bilateral aid flows both from Traditional Donors (TDs) and Non-Traditional Donors (NTDs), unlike many earlier studies that have focused on TDs.

The Dynamics of Foreign Aid Trends and Patterns Among Low- Income Countries in Africa

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Research background: Foreign aid flows to Africa mostly the Low-Income Countries (LICs) have increased drastically since 2000. Increasing aid flows are...

The Dynamics of Foreign Aid Trends and Patterns Among Low- Income Countries in Africa

Published Online: Jan 29, 2021

Page range: 403 - 422

Received: Dec 24, 2019

Accepted: Oct 05, 2020

DOI: https://doi.org/10.2478/foli-2020-0056

Keywords
Foreign aid, sectoral aid allocation, Low-Income Countries, aid dependency, Africa

© 2020 Mamo G. Tefera et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Dynamics of Foreign Aid Trends and Patterns Among Low- Income Countries in Africa

Published Online: Jan 29, 2021

Page range: 403 - 422

Received: Dec 24, 2019

Accepted: Oct 05, 2020

DOI: https://doi.org/10.2478/foli-2020-0056

KeywordsForeign aid, sectoral aid allocation, Low-Income Countries, aid dependency, Africa

© 2020 Mamo G. Tefera et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Foreign aid, sectoral aid allocation, Low-Income Countries, aid dependency, Africa