scholarly journals The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan

2021 ◽  
Vol 8 (2) ◽  
pp. 141-154
Author(s):  
Muhammad Farahmand
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
The Relationship

scholarly journals Can One Promote a Delegation of the Bilateral Aid to Multilateral Donors to Improve Foreign Aid Effect on Economic Growth in ECOWAS (Note 1) Countries?

2019 ◽  
Vol 2 (1) ◽  
pp. 51
Author(s):  
W. Jean Marie Kébré
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Least Squares ◽  
Foreign Aid ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Multilateral Institutions ◽  
Negative Effect ◽  
High Degree ◽  
The Relationship

<p><em>This article analyzes the relationship between external aid and economic growth in the ECOWAS region, with a focus on bilateral and multilateral aid effects. The key idea behind this analysis is an argument of Svensson</em><em> </em><em>(2000)</em><em> that multilateral aid is more effective than bilateral aid because of the high degree of altruism of bilateral donors. He therefore suggested a delegation of bilateral aid to multilateral institutions. To appreciate his suggestion, this analysis used panel data from the 16 ECOWAS countries from the period 1984 to 2014. The results of the estimates, based on the dynamic least squares estimator (DOLS), show a negative effect of foreign aid on economic growth. This negative effect on economic growth persists when the components of aid are introduced into the model. In addition, results highlight that governance is a channel through which foreign aid affect positively economic growth. In these conditions, bilateral aid is more effective on economic growth than multilateral aid. These results about foreign aid received by ECOWAS countries invalidates</em><em> </em><em>Svensson’s</em><em> </em><em>(</em><a title="Svensson, 2000 #5" href="#_ENREF_1"><em>2000</em></a><em>)</em><em> theory. Therefore, a delegation of bilateral aid to multilateral institutions is not relevant because bilateral aid contributes more to economic growth if governance is taken into account.</em></p>

scholarly journals The Impact of Foreign Aid on Economic Growth in Palestine: An Empirical Evidence

2021 ◽  
pp. 99-114
Author(s):  
Nemer Badwan ◽  
Mohammed Atta
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Labour Force ◽  
High Rate ◽  
Series Data ◽  
Special Focus ◽  
Chow Test ◽  
Palestinian Economy ◽  
The Impact ◽  
The Relationship

This study examines the Impact of Foreign Aid on Economic Growth in Palestine by considering time series data of the last twenty years from (2000-2019). Foreign Aid's Impact on the Palestinian Economy explored with the Gross Domestic Product (GDP) as the dependent variable against few selected independent variables such as Foreign Aid, Remittance, Investment, Labour Force and Lagged (GDP). This study used the Partial Adjustment Model to analyze the Impact of Foreign Aid on Economic Growth in Palestine and also applied the (Chow Test) to examine whether there was a Structural Breakthrough in the Palestinian Economy. The results indicate that Foreign Aid has a positive relationship with (GDP). However, the relationship is not significant since the higher volume of Foreign Aid used in Humanitarian and Social Welfare rather than Production Activities in the real sectors. (Chow Test) shows that the relationship between Foreign Aid (GDP) has not witnessed a Structural Breakthrough in the Palestinian Economy over the past twenty years. In light of these empirical results, we suggest that Government Policy-Makers and Decision-Makers allocate this Foreign Aid to Productive Sectors and Human Capital formation (HC) activities with a special focus on capital expenditures to achieve a high rate of the country's Economic Growth and Development and to meet the periodic plan and Long-Term Development goals.

scholarly journals Foreign Aid, Domestic Savings and Economic Growth (Pakistan: 1960 to 1988)

1993 ◽  
Vol 32 (4II) ◽  
pp. 1157-1167 ◽  
Author(s):  
Naheed Zia Khan ◽  
Eric Rahim
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Negative Relationship ◽  
Causal Chain ◽  
Domestic Investment ◽  
Quantitative Evidence ◽  
Explanatory Variables ◽  
Savings Rate ◽  
Domestic Savings ◽  
The Relationship

One of the core tenets of foreign aid theory, particularly as encapsulated in the two-gap model, is that the insertion of foreign resources via free grants, loans, direct investment etc., into a developing economy sets in motion a causal chain of positive influences in the following broad mannerl: aid' ~ increase in investible resources ~ increase in domestic investment ~ more rapid rate of economic growth. Spirited and specific challenges to this approach came from many critics, supported greatly by a number of broad theoreticaF and empirical analyses. For a large part of the latter, the available evidence pointed to a negative relationship between aid and domestic savings. The evidence was largely based on crosssectional data, 'showing that, there was, in addition, reason to suggest a negative relationship between aid and economic growth. 3 The aim of this study is to provide some quantitative evidence on the relationship between foreign aid, domestic savings and economic growth for Pakistan. The analysis is carried out in three parts. Part one contains the methodology and the description of the data. Part two explores the correlation between aid and several other explanatory variables with Pakistan's savings rate, while part three attempts to analyse and explain the regression findings in terms of the effect of aid on economic growth.

The Wealth (and Want) of Nations: The Impact of Economic Globalization on the Developing World

2012 ◽  
Vol 11 (1) ◽  
pp. 38-49
Author(s):  
Dwight Haase
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Informal Sector ◽  
Economic Globalization ◽  
Developing Nations ◽  
Unit Of Analysis ◽  
Extensive Data ◽  
Poverty And Inequality ◽  
The Impact ◽  
The Relationship

AbstractIn this article I review the literature on four outcomes of economic globalization: growth, wages, poverty, and inequality. Special attention is given to the importance of these outcomes for people of developing nations. Findings in the literature show a correlation between economic globalization and economic growth, but the relationship is much stronger for some nations than for others. Evidence on wages also shows uneven benefits from economic globalization. The evidence on poverty is inconclusive, while several authors note growing inequality within nations. These studies highlight the need for more research that includes extraneous factors, such as foreign aid and remittances. Further research also should refine the unit of analysis and gather extensive data from the informal sector.

scholarly journals Investment attraction for digital economy, digital technology sector in digital transformation era from ODA investment - and comparison to FDI investment in Vietnam

2021 ◽  
Vol 7 (3A) ◽  
pp. 427-439
Author(s):  
Dinh Tran Ngoc Huy ◽  
Tran Thi Ngoc Linh ◽  
Nguyen Tien Dung ◽  
Phan Thi Thuy ◽  
Ta Van Thanh ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Digital Technology ◽  
Direct Investment ◽  
Digital Transformation ◽  
Technology Sector ◽  
Long Run ◽  
Investment Capital ◽  
Economic Infrastructure ◽  
The Relationship

Our study will make an examination of the relationship between official development assistance (ODA), Foreign Direct Investment (FDI) and economic growth (GDP) in an emerging economy such as Vietnam. Regarding to methods, authors use statistics, quantitative combined with qualitative analysis. However, in the long run, although GDP has a vague effect on ODA, on the contrary, ODA put a big (significantly) effect on GDP, at the beginning of the fifth year, the relationship is not clear between ODA and GDP to promote itself increase or decrease. Foreign aid also affects the growth of nations (negatively) and, over periods, positively contributes to economic growth. Last but not least,  it must be confirmed that ODA is an extra capital source for investment in development of socio-economic infrastructure and a catalyst for other investment sources such as FDI and investment capital private sector.

Kazakhstan’s Economic Growth in the Context of the World Economy

2006 ◽  
pp. 133-146 ◽  
Author(s):  
K. Arystanbekov
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
World Economy ◽  
World Ocean ◽  
Direct Access ◽  
Crude Petroleum ◽  
Nation States ◽  
The World ◽  
The Relationship

Kazakhstan’s economic policy results in 1995-2005 are considered in the article. In particular, the analysis of the relationship between economic growth and some indicators of nation states - population, territory, direct access to the World Ocean, and extraction of crude petroleum - is presented. Basic problems in the sphere of economic policy in Kazakhstan are formulated.

PENGARUH PRODUK DOMESTIK BRUTO, INFLASI DAN RASIO GINI TERHADAP PENGANGGURAN TERBUKA DI PROVINSI DKI JAKARTA

2018 ◽  
Vol 14 (2) ◽  
Author(s):  
Sri Mahendra Putra Wirawan
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Economic Conditions ◽  
Research Model ◽  
Economic Region ◽  
Regression Methods ◽  
Price Increases ◽  
Comprehensive Picture ◽  
Development Goals ◽  
The Relationship

Gross Regional Domestic Product (GRDP) which provides a comprehensive picture of the economic conditions of a region is indicator for analyzing economic region development. Another indicator that is no less important is inflation as an indicator to see the level of changes in price increases due to an increase in the money supply that causes rising prices. The success of development must also look at the income inequality of its population which is illustrated by this ratio. One of the main regional development goals is to improve the welfare of its people, where to see the level of community welfare, among others, can be seen from the level of unemployment in an area. To that end, in order to get an overview of the effects of GRDP, inflation and the ratio of gini to unemployment in DKI Jakarta for the last ten years (2007-2016), an analysis was carried out using multiple linear regression methods. As a result, together the relationship between GRDP, inflation and the Gini ratio is categorized as "very strong" with a score of 0.936, and has a significant influence on unemployment. Partially, the GRDP gives a significant influence, but inflation and gini ratio do not have a significant influence. GDP, inflation and the Gini ratio together for the last ten years have contributed 81.4% to unemployment in DKI Jakarta, while the remaining 18.6% is influenced by other variables not included in this research model, so for reduce unemployment in DKI Jakarta, programs that are oriented to economic growth, suppressing inflation and decreasing this ratio need to be carried out simultaneously. Keywords: GRDP, inflation, unemployment, DKI Jakarta, GINI ratio  

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