What is the Economic Impact of Development Aid?

Abstract

Foreign aid inflows have grown significantly in the post-war period. Many studies have tried to assess the effectiveness of aid at the micro- and macro-level. While micro evaluations have found that in most cases aid ‘works’, those at the macro-level are ambiguous. This paper investigates the impact of foreign aid on economic growth in Ethiopia using time series data for the period 1981 to 2015. The main objective is to identify the relationship that aid has with the developmental path of the country and whether one can reasonably link outcomes to aid inputs. To this end, the study used the production function initiated by Solow-Swan model and cointegration analysis the study is able to demonstrate the existence of long-run relationship between the official development assistance and economic growth of Ethiopia. The study found that there is negative relationship between ODA and economic growth and tend to be postive in the long run.

Authors and Affiliations

GEBREGERGIS, Cherkos Meaza

Keywords

Related Articles

Linguistic Landscapes: Cultural Representation in Ubud.

The study of outdoor signs is known as the study of linguistic landscapes. The study covers Ubud area, one of the best cultural tourist destinations in Bali. This study is aimed to give further investigation on the prese...

E-citizenship: Social Media and Information Literacy. A School Toolkit.

In the following article we define the different dimensions (and connected implications) that the digital evolution entails, in the perspective to define the relevant skills and competences that education should elect as...

Research on Location Selection of International Offices of Large Multinational Service Companies Based on Analytic Hierarchy Process .

At present, there are many large multinational service companies that are in the process of continuous development. In order to facilitate the expansion of the company's scale, it is necessary to set up some internationa...

Research on the Cultivation of High School Students' Mathematical Modeling Literacy Based on Analytic Hierarchy Process .

Core literacy is the focus of education which is highly concerned by the international community. It is also the main direction of the new round of deepening curriculum reform in China. In the background of improving the...

Methods of Accounting for Business Combinations Legal.

Through the latest developments in technology, changes in market conditions and the partial deregulation or full of industries, business combinations all over the world recently have become the usual way of business life...

Download PDF file
  • EP ID EP503871
  • DOI -
  • Views 136
  • Downloads 0

How To Cite

GEBREGERGIS, Cherkos Meaza (2018). What is the Economic Impact of Development Aid?. International Journal of Innovation and Research in Educational Sciences, 5(3), 331-343. https://europub.co.uk/articles/-A-503871