Contribution of Official Development Assistance to Poverty Alleviation In The Ecowas

Abstract

This thesis studies the effect of Official Development Assistance (ODA) on Poverty in the Economic Community of West African States (ECOWAS). The transmission channel extends from ODA to Poverty alleviation through economic growth. Using panel data from 1980 to 2014 and a four-equation simultaneous model, the results show that ODA contributes to reduce poverty, measured by the infant mortality rate. However, its effect on economic growth was found to be harmful. Therefore, it can be concluded that ODA is pro-poor, but not growth enhancing in West African countries. A policy implication of this study is that ECOWAS member countries should adopt strategies and policies in order to use the foreign aid to achieve both objectives, which consist of promoting economic growth and reducing poverty.