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Effects of the European Union’s Development Aid on Trade in Sub-Saharan Africa - An Analysis of the Role of Democracy

Loheman, Anna LU and Paloviita Nilsson, Moa LU (2024) NEKH03 20232
Department of Economics
Abstract
This thesis examines the impact of the European Union's development aid on export and import levels in Sub-Saharan Africa, focusing on the role of democracy levels in the recipient countries. Using a multiple regression model with panel data from 1990 to 2018 across 27 countries, the study assesses the influence of the EU’s aid on trade, while also considering the factors GDP, population, life expectancy, gross capital formation, and agricultural land. Findings indicate an insignificant relationship between the EU’s aid and trade growth, where neither the EU’s aid nor the level of democracy in recipient countries showed a significant impact on export or import levels. However, the economic factors agricultural land, gross capital formation... (More)
This thesis examines the impact of the European Union's development aid on export and import levels in Sub-Saharan Africa, focusing on the role of democracy levels in the recipient countries. Using a multiple regression model with panel data from 1990 to 2018 across 27 countries, the study assesses the influence of the EU’s aid on trade, while also considering the factors GDP, population, life expectancy, gross capital formation, and agricultural land. Findings indicate an insignificant relationship between the EU’s aid and trade growth, where neither the EU’s aid nor the level of democracy in recipient countries showed a significant impact on export or import levels. However, the economic factors agricultural land, gross capital formation and population size emerged as significant influences, suggesting that internal dynamics and demographic trends may play a more critical role in shaping trade. This research highlights the complexity of aid-trade relationships and the importance of considering unique regional contexts in aid strategies. (Less)
Please use this url to cite or link to this publication:
author
Loheman, Anna LU and Paloviita Nilsson, Moa LU
supervisor
organization
course
NEKH03 20232
year
type
M2 - Bachelor Degree
subject
keywords
EU, exports, imports, Sub-Saharan Africa, democracy
language
English
id
9145639
date added to LUP
2024-04-16 09:29:45
date last changed
2024-04-16 09:29:45
@misc{9145639,
  abstract     = {{This thesis examines the impact of the European Union's development aid on export and import levels in Sub-Saharan Africa, focusing on the role of democracy levels in the recipient countries. Using a multiple regression model with panel data from 1990 to 2018 across 27 countries, the study assesses the influence of the EU’s aid on trade, while also considering the factors GDP, population, life expectancy, gross capital formation, and agricultural land. Findings indicate an insignificant relationship between the EU’s aid and trade growth, where neither the EU’s aid nor the level of democracy in recipient countries showed a significant impact on export or import levels. However, the economic factors agricultural land, gross capital formation and population size emerged as significant influences, suggesting that internal dynamics and demographic trends may play a more critical role in shaping trade. This research highlights the complexity of aid-trade relationships and the importance of considering unique regional contexts in aid strategies.}},
  author       = {{Loheman, Anna and Paloviita Nilsson, Moa}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Effects of the European Union’s Development Aid on Trade in Sub-Saharan Africa - An Analysis of the Role of Democracy}},
  year         = {{2024}},
}