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This study departed from other agricultural aid-growth studies by measuring growth as the annual growth rate of agricultural value added and accounting for the moderating role of governance on the aid-growth effect. Using data on a panel of 117 developing countries from 1996 to 2020, aid negatively influenced agricultural growth. Governance had a negative but insignificant independent effect on growth. However, the interaction of governance with aid turned the aid-growth effect from a significant negative to a statistically insignificantly positive effect. Since the low level of governance produced the positive interaction effect, of the aid-growth relationship, escalation of (good) governance could produce a strong effect. [ABSTRACT FROM AUTHOR]

The paper assessed the effect of economic policy on the effects of aid to agricultural production and consumption on agricultural growth in developing countries. We used data from a panel of 117 countries from 1996 to 2020 fitted to a GMM estimator. We found that both aid-to-production and aid-for-consumption discourage agricultural growth. Economic policy independently enhances agricultural growth. Foreign direct investment promotes agricultural growth. In the presence of economic policy, whilst aid-to-production did not discourage agricultural growth, it worsened the effect of aid-to-consumption on agricultural growth. Among other recommendations, developing countries should seek less foreign aid-toproduction and more FDI into agricultural production as both the former and the latter would increase agricultural growth. Governments in developing countries must enhance trade and macroeconomic policies and promote FDI as this would increase agricultural growth.

The paper assessed the effect of economic policy on the effects of aid to agricultural production and consumption on agricultural growth in developing countries. We used data from a panel of 117 countries from 1996 to 2020 fitted to a GMM estimator. We found that both aid-to-production and aid-for-consumption discourage agricultural growth. Economic policy independently enhances agricultural growth. Foreign direct investment promotes agricultural growth. In the presence of economic policy, whilst aid-to-production did not discourage agricultural growth, it worsened the effect of aid-to-consumption on agricultural growth. Among other recommendations, developing countries should seek less foreign aid-toproduction and more FDI into agricultural production as both the former and the latter would increase agricultural growth. Governments in developing countries must enhance trade and macroeconomic policies and promote FDI as this would increase agricultural growth. [ABSTRACT FROM AUTHOR]

There are interesting debates on the influence of foreign aid to agriculture on economic growth in Africa. Some scholars have argued that, despite the inflows, majority of rural smallholder farmers in the continent are extremely poor. The precise channels through which foreign aid is to promote sectoral growth has been inadequately understood from the literature. This paper is a systematic literature review on the empirical evidence of the relationship between agricultural aid and growth in Sub Saharan African countries. The Generalized Methods of Moments and the Granger causality test are the main methodological approaches of papers reviewed and the relationship between agricultural aid and productivity growth is positive and quite significant. However, the results demonstrate a weak synergy between the various forms of agricultural aid and growth. The main recommendation is to have a broader conceptual, theoretical or analytical frameworks that clearly define how agricultural aid influences productivity when measured against other influencing factors. Aid is only a catalyst to growth so, governments must invest and provide the necessary infrastructure and a conducive policy environment for increased productivity and growth. [ABSTRACT FROM AUTHOR]

In sub-Saharan Africa, extreme poverty highlights the tension between development aid and the environment. Foreign aid is considered one of the most important factors affecting forest health in this region. Although many studies have empirically examined the effects of different kinds of foreign aid on forests, few have investigated the potential impact of agricultural aid. This study investigated the causal effects of agricultural aid on forests in Sierra Leone, a country that relies heavily on agricultural products. We constructed a fine-grained (16-day) indicator of forest growth from 2001 to 2015 by combining remotely sensed data of land cover and the Normalized Difference Vegetation Index. The high frequency of forest growth data enables us to trace the dynamic causal process. To reduce the confounding effects of heterogeneity, we applied a difference-in-difference design with data at the sub-national level to estimate the causal effect. This study provides robust empirical evidence that foreign agricultural aid harms forests both in the short term (i.e., 16 days) and long term (i.e., years) in Sierra Leone. Agricultural aid projects with agricultural development as their primary objective or aid projects without specific objectives lead to the highest levels of forest degradation. [ABSTRACT FROM AUTHOR]

In sub-Saharan Africa, extreme poverty highlights the tension between development aid and the environment. Foreign aid is considered one of the most important factors affecting forest health in this region. Although many studies have empirically examined the effects of different kinds of foreign aid on forests, few have investigated the potential impact of agricultural aid. This study investigated the causal effects of agricultural aid on forests in Sierra Leone, a country that relies heavily on agricultural products. We constructed a fine-grained (16-day) indicator of forest growth from 2001 to 2015 by combining remotely sensed data of land cover and the Normalized Difference Vegetation Index. The high frequency of forest growth data enables us to trace the dynamic causal process. To reduce the confounding effects of heterogeneity, we applied a difference-in-difference design with data at the sub-national level to estimate the causal effect. This study provides robust empirical evidence that foreign agricultural aid harms forests both in the short term (i.e., 16 days) and long term (i.e., years) in Sierra Leone. Agricultural aid projects with agricultural development as their primary objective or aid projects without specific objectives lead to the highest levels of forest degradation.

The aim of this study was to analyse the determining factors of official development assistance (ODA) provided to the agricultural and food sectors. Lack of empirical research on this type of ODA makes this study stand out from the sea of qualitative approaches. By analysing the agricultural sectors and the views of aid recipient countries, this paper provides evidence-based explanations for the aid flows between donor and recipient countries. Using disbursement ODA data covering 141 countries over 2002-2012, we devise and estimate a gravity model. Heckman's two-step approach is adopted to address a potential bias arising from the selection of aid recipient countries. The estimated results confirm that agricultural aid is mainly governed by the needs of the recipient countries with regard to factors such as undernourishment and food inadequacy rates, depth of food deficits and political circumstances. As expected, the results indicate that food aid is influenced mostly by humanitarian factors.

This paper studies the effect on the industrialization process of developing countries of foreign aid given to agriculture to expand its productive capacity. According to our theoretical analysis, this effect is conditional on the openness of receiving countries. Our empirical results based on panel data for developing countries confirm this analysis, as we find that the effect of this kind of agricultural aid on the rate of growth of the industrial sector of landlocked countries is indeed positive. [ABSTRACT FROM AUTHOR]

In this paper, we focus on foreign aid-effectiveness in developing aid-recipient countries. By disaggregating total aid into sub-categories, we develop a model in which aid affects the welfare of the poor, as measured by a human development index. Our estimates (robust for different specifications) show that an increase in aid to the agricultural sector, one of our aid sub-categories, can improve the welfare of the poor, both directly and indirectly, through pro-poor public expenditure. Accordingly, more attention to the agricultural sector and reversing the decline in agricultural aid may improve the overall effectiveness of aid and achieve a sustainable transition out of poverty by increasing aggregate welfare. [ABSTRACT FROM AUTHOR]

In January 2012, insurgent groups in northern Mali began a violent campaign against the central government. By March 2012, then-President Amadou Toumani Touré (ATT) was ousted in a successful coup. The ongoing unrest has drastically shifted the strategies foreign donors are using to allocate aid, particularly to northern Mali. While bilateral donors have drastically scaled back all programmatic aid, NGOs including Oxfam International and the Red Cross have stepped in to provide humanitarian aid. This shift from programmatic to humanitarian aid has left the agricultural sector particularly vulnerable. Since most of the food grown in Mali is grown in the northern region, such a drastic decrease in agricultural aid will have catastrophic effects in terms of projected food shortages. Furthermore, using evidence from new World Bank survey data gathered in northern Mali in 2015, we find that the agricultural aid being distributed by NGOs is not targeting those most in need. We find that French-speaking villages are more likely to be targeted for aid compared to non-French-speaking villages. We argue that in northern Mali, under the current sociopolitical conditions, speaking French makes these villages more attractive to aid organizations, regardless of their actual need for assistance. This appropriation principle means that aid is not going to the most vulnerable, but to the most politically or socially connected. We also find proof of a second layer of aid misappropriation. While Sonrai and Tamasheq-speaking villages receive less agricultural aid than French-speaking villages, the aid they do receive goes to those households most vulnerable to exogenous shocks. However, in French-speaking villages, the most vulnerable households are not guaranteed to receive agricultural aid. If desperately needed agricultural aid continues to be misappropriated, it could lead countries like Mali to become even more unstable. [ABSTRACT FROM AUTHOR]

The formation of physical capital in Sub-Saharan Africa (SSA) in agriculture is imperative to help the continent (1) overcome the effect of the COVID-19 pandemic on food insecurity and (2) still be on track towards achieving the Sustainable Development Goals (SDGs) of " No poverty " and " Zero hunger" in the midst of the COVID-19 pandemic. Using country-level data on 40 SSA countries from 1996 to 2014 and rainfall deviations as an instrument for agricultural official development assistance (ODA) in fixed-effect estimation settings, this paper examines the 'instantaneous' impact of agricultural ODA on agricultural fixed capital formation in SSA. The question here is whether aid to agriculture does translate instantaneously to building fixed capital urgently needed to address the effect of any potential crisis on food insecurity. Measuring agricultural fixed capital as fixed investments in farm machinery, dams, industrial buildings for agricultural and agro-processing, fences, ditches, drains, etc., we find that capital formation in SSA agriculture improves instantaneously with agricultural ODA inflows. Second, we find that even though rainfall deviations are associated with agricultural ODA inflows to SSA, institutions particularly those designed to control corruption and strengthen rule of law, do matter for agricultural aid inflows to SSA. These results suggest that agricultural ODA is necessary to accelerate agricultural investments and achieve food security. Our results are robust to sensitivity analysis on the specification of the instantaneous model., (© 2020 Elsevier Ltd. All rights reserved.)