The dynamic analysis of political liberalization effect on agricultural foreign aid in Africa
摘要
This paper examines the effects of political liberalization on foreign aid allocated to Africa’s agricultural sector from 1973 to 2019. Using a panel of 52 African countries and advanced econometrics methods, including error correction models with panel-corrected standard errors (ECM-PCSE) and system generalized method of moments (System GMM), the findings reveal that democratic reforms positively and significantly influence long-term foreign aid to agriculture. Robustness checks, including the interaction between Freedom House indexes and Polity, other measures of political liberalization, and region-specific analyses, confirm these results. Enhanced political openness fosters donor confidence, leading to increased aid, which is crucial given agriculture’s role in poverty reduction and economic growth in Africa. Conversely, weak institutions and autocratic regimes hinder aid effectiveness. The analysis suggests that sustained democratic reforms foster a conducive environment for agricultural development aid, with long-term benefits for poverty alleviation and food security. Policy implications highlight the need for continuous democratization efforts and aid allocation strategies aligned with governance quality to optimize aid effectiveness in Africa’s agricultural sector.