This paper assesses the effectiveness of development aid for a group of 21 Sub-Saharan African countries in the 1980s. The paper explicitly differentiates between the impact of aid on private savings and taxes on the one hand, and government consumption expenditures on the other. The paper shows that foreign aid has positively contributed to GNP growth of the African countries. However, it also appears that direct effects of aid on economic growth are counteracted by government behavior since governments relaxed their tax effort or increased their consumption expenditures.
|Number of pages||20|
|Publication status||Published - 1993|
- DOMESTIC SAVINGS