Human capital, foreign aid and poverty reduction strategy in Chad
Poverty is a worldwide phenomenon that affects continents, countries, and people differently in both urban and rural areas. Although the International Development Assistance (IDA) or also known as foreign aid (FA) has been supporting poverty reduction around the world, particularly in Sub-Saharan...
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| Format: | Thesis |
| Language: | English English English |
| Published: |
2021
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/4802/1/24p%20KHALIL%20ABAKAR%20MOUSSA%20KAYA.pdf http://eprints.uthm.edu.my/4802/2/KHALIL%20ABAKAR%20MOUSSA%20KAYA%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/4802/3/KHALIL%20ABAKAR%20MOUSSA%20KAYA%20WATERMARK.pdf |
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| Summary: | Poverty is a worldwide phenomenon that affects continents, countries, and people
differently in both urban and rural areas. Although the International Development
Assistance (IDA) or also known as foreign aid (FA) has been supporting poverty
reduction around the world, particularly in Sub-Saharan Africa (SSA) countries for
more than five decades. However, the issues of poverty remained unsolved in many
poor nations. Therefore, this study investigated the mediating role of foreign aid in the
relationship between human capital (i.e., education, health, and vocational training)
and poverty reduction in Chad. Thus, the human capital theory was integrated as the
underpinning theory to support the fundamental conceptual framework of the study.
As such, a mixed methods design (qualitative and quantitative) was used including
secondary data collected from the World Bank to confirm the findings from both
analyses. A total of 354 survey questionnaires were collected from the community
leaders, members of independent associations and non-governmental organizations
(NGO) representatives in Chad and therefore, time series data gathered from the World
Bank database from 1991 to 2019. Therefore, the results from the semi-structured
interviews (qualitative) showed that poverty reduction strategy in Chad is insufficient
and unsatisfactory. In addition, participants agreed that education, health and
vocational training strongly influence the poverty reduction strategy. The quantitative
analysis from the secondary data revealed that only vocational training positively
correlates with poverty reduction. However, health and education indicate a significant
negative relationship with poverty reduction. Furthermore, the Partial Least Squares
Structural Equation Modeling (PLS-SEM) analysis on the other hand revealed that
there is a significant positive relationship between education, vocational training and
poverty reduction in Chad. Also, the results indicated that foreign aid mediates the
relationship between education, vocational training and poverty reduction. But health
has shown a negative effect on poverty reduction directly and indirectly through
foreign aid. The study has confirmed that human capital indicators play a vital role in
reducing poverty and therefore, foreign aid plays a role that not to be neglected in
poverty reduction in Chad. Thus, it is recommended that Chadian government to
enhance more on the management of the foreign aid given to the health sector by
evaluating the impact of the aids after the execution process. Through this, poverty
reduction can be improved, leading to a positive and significant effect on overall
poverty reduction plan in Chad. Also, the results add to the existing literature by
incorporating variables that might improve poverty reduction. The research also
addressed the implication of practices and future research. |
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