  The main purpose of this paper is to analyze threshold effects of official
development assistance (ODA) on economic growth in WAEMU zone countries. To
achieve this, the study is based on OECD and WDI data covering the period
1980-2015 and used Hansen's Panel Threshold Regression (PTR) model to
"bootstrap" aid threshold above which its effectiveness is effective. The
evidence strongly supports the view that the relationship between aid and
economic growth is non-linear with a unique threshold which is 12.74% GDP.
Above this value, the marginal effect of aid is 0.69 points, "all things being
equal to otherwise". One of the main contribution of this paper is to show that
WAEMU countries need investments that could be covered by the foreign aid. This
later one should be considered just as a complementary resource. Thus, WEAMU
countries should continue to strengthen their efforts in internal resource
mobilization in order to fulfil this need.
