Development Effectiveness of Official Development Assistance in Promoting Economic Growth: An Applied Analytical Study of Sub-Saharan African Countries (2000–2023)

Abstract:
  Official Development Assistance (ODA) represents a key tool for supporting economic and social development in Sub-Saharan African countries, yet its effectiveness in promoting economic growth remains widely debated. This study aims to analyze the impact of ODA on economic growth in the region during 2000–2023, emphasizing the role of governance quality as an institutional factor shaping aid effectiveness.
  The study employs a quantitative panel data methodology covering 26 countries, incorporating indicators of aid volume, domestic investment, education quality, and governance effectiveness. The results indicate that ODA exerts a weak positive impact on economic growth (β = 0.061) with limited statistical significance. Domestic investment, education quality, and governance emerged as stronger determinants of growth compared to aid alone.
   Interactive regression models demonstrate that governance quality critically moderates the effect of ODA, enhancing its positive impact as governance improves (β₃ = 0.113, Sig. = 0.004). Temporal analysis reveals that aid effectiveness fluctuates in response to major economic shocks, such as the global financial crisis and COVID-19 pandemic, while countries with stable and strong institutional environments achieve more sustained benefits from aid.
  Based on these findings, the study recommends strengthening governance and public institutions, integrating ODA into national development plans, and targeting productive sectors such as infrastructure, education, and agriculture, while investing in human capital to maximize long-term impact. Additionally, it calls for comprehensive evaluation mechanisms that assess aid effectiveness beyond financial volume, including governance quality and growth outcomes.