Foreign Aid, Public Investment and Poverty Level: Evidence from SSA

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The study analysed the trend of foreign aid, public investment and poverty level in selected sub-Saharan Africa countries; and examined the effect of foreign aid and public investment on poverty level for the period of 1990 to 2013.

Furthermore, it investigated the causal link among foreign aid, public investment and poverty level in low income, lower-middle income and upper income countries in sub-Sahara African countries over the period of 1990 and 2013.

These were with the view to examine the relationship among foreign aid, public investment and poverty level in SSA countries.

Secondary data were employed for the study.

Annual data on foreign aid (proxied by official development assistance), public investment, poverty level (proxied by household consumption per capita, life expectancy at birth and agriculture value added per capita), GDP per capita, and control of corruption covering the period from 1990 to 2013 were sourced from World Development Indicator and World Governance Indicator of the World Bank, 2014 Editions.

Data collected were analysed using descriptive techniques such as graphs while Panel Autoregressive Distributed Lag (PARDL) and Panel Vector Error Correction.

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