Africa; Managing in emerging and less developed economies; Philanthropy; Private foundations; Theory Development; Sustainable Development.
Document Number: RA1
Publication date: 03 August 2021
Series: Research Articles
The paper examines the simultaneous impact of private philanthropic cross-border funding from international foundations on the economic, social, and environmental dimensions of sustainable development in Africa. The vector error correction model (VECM) was used, and contrary to expectations drawn from past studies, funding from this source improves economic growth, advances human development, and enhances environmental quality. Causality test results also disconfirmed the assumption that interactions among the three dimensions were positive and complementary in the long term. The environment variable was found to be noncomplementary. Based on these unique results, theoretical propositions are made with an underlying mechanism of action. Practical and policy implications, limitations, and directions for future research are discussed.