Does foreign Aid Contributes to or Impeded Economic Growth

• Autorzy: Thian-Hee Yiew , Evan Lau
• Języki publikacji: EN

Abstrakty

EN

This study empirically investigates the role and the impact of foreign aid (ODA) on economic growth (GDP) using 95 developing countries as the sample. Here we also include foreign direct investment (FDI) and population (POP) as the control variables. The panel data results indicate that a U-shape relationship exists between foreign aid and economic growth (Wamboye, 2012; Gyimah-Brempong and Racine, 2014). Initially, foreign aid negatively impacts the countries' growth and over a period of time, it positively contributes to economic growth. Further, the results strongly support the view that both FDI and POP are more important determinants of GDP, implying that GDP is less likely to depend on ODA. Strengthening the legal framework would be essential for these countries while their overdependency on the influx of ODA might lead to negative impacts on the growth as a whole. Importantly, effective management of foreign aid would ensure the Sustainable Development Goals (SDG) are achieved.(original abstract)

Słowa kluczowe

EN

Foreign aid; Economic growth; Panel data; Developing countries

PL

Pomoc zagraniczna; Wzrost gospodarczy; Dane panelowe; Kraje rozwijające się

• Czasopismo: Journal of International Studies
• Rocznik: 2018
• Tom: 11
• Numer: nr 3
• Strony: 21--30

Twórcy

autor

Thian-Hee Yiew

• University Tunku Abdul Rahman, Malaysia

autor

Evan Lau

• Universiti Malaysia Sarawak (UNIMAS), Malaysia

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Identyfikatory

DOI

10.14254/2071-8330.2018/11-3/2