Abstract:
The study examined the effect of IMF financing on economic growth within the sub Saharan region and to ascertain whether multilateral aid played complementary role in
driving growth of sub-Saharan African economies. The study employed explanatory
research design, and fixed effect panel regression model to estimate the effects of
multilateral aid and inflation over an annual period of 2000-2022 was used. Again, the
study used secondary data mainly drawn from the World Bank (World Development
Indicators, International Financial Statistics) and IMF (World Economic Outlook) 2023
online databases. The findings established a positive relationship between IMF
financing on economic growth. The positive results show that, multilateral aid
injections can act as an economic stimulus, particularly during periods of economic
downturn whiles inflation posits a negative and insignificant relationship on economic
growth. One major implication of the findings is that SSA countries have one way or
the other benefited substantially from IMF aid. It is, therefore, important for these
countries to develop stronger institutions that would attract more inflows from
multilateral aids. In accessing the effect of inflation on economic growth, the study
found that there is a negative and insignificant relationship between inflation and
economic growth. This translates that, if inflation improves by a unit, it causes a
decrease in economic growth. Though the study found an indirect relationship between
inflation and economic growth, inflation determines how well an economy grows.
Conversely, the inflation coefficient has a negative. This suggests that slower economic
development and higher inflation rates are related.
Description:
A Dissertation in the Department of Applied Finance and Policy Management,
School of Business, submitted to the school
of Graduate Studies, in partial fulfilment
of the requirements for award of the degree of
Master of Business Administration (Finance)
in the University of Education, Winneba
