Did USAID promote economic growth prior to the 2011 Egyptian Revolution?
The effectiveness of foreign AID, specifically, the role it plays in promoting growth in developing countries, is one of the most debated issues in the field of economics. Despite the enormous resources channeled to developing countries over the past decades, only limited tangible results can be observed. The literature on AID effectiveness is vast. Yet, the results are inconclusive.
This paper examines the impact of economic AID provided by the United States on Egyptian economic growth before the Egyptian revolution in 2011, more precisely, Mubarak’s era. The paper uses a Vector Autoregressive (VAR) model and Granger causality test to answer the question of whether the U.S. Agency for International Development (USAID) has been conductive to growth in Egypt over the period 1981-2010.
The results reveal that USAID has no impact on the Egyptian economic growth. The recommendations put forward by this paper are measures that Egyptian policymakers can undertake to increase AID effectiveness. These measures include the reduction of corruption, more active participation in delivering AID, greater accountability for AID outcomes, and coordination of the activities of AID agencies.
AboElsoud, M.E. (2018), "Did USAID promote economic growth prior to the 2011 Egyptian Revolution?", Journal of Chinese Economic and Foreign Trade Studies, Vol. 11 No. 3, pp. 219-235. https://doi.org/10.1108/JCEFTS-05-2018-0013