The Aid, Macroeconomic Policy Environment and Growth Nexus: Evidence from Selected Asian Countries

Liaqat, Saima; Ahmad, Hafiz Khalil; Kifle, Temesgen; Alauddin, Mohammad

doi:10.35536/lje.2019.v24.i1.a4

Cited by 3 publications

(2 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The findings revealed a negative influence of aid on the GDP of Ghana [30]. The effectiveness of foreign aid on economic growth for South Asian and Southeast Asian economies was analysed [31] which revealed negative influence in the economy. Nevertheless, ODA and FDI indicated insignificant impacts on economic growth [32].…”

Section: Research Elaborationsmentioning

confidence: 99%

External Debt, NODA, and GDP Growth Nexus for South Asian and Southeast Asian Selected Economies

Mazher¹,

Dahalan²

2022

JPOME

View full text Add to dashboard Cite

The fundamental aim of this study is to fetch out the influence of NODA (net official development assistance) and EDS (external debt stock) on GDP growth in South Asian and Southeast Asian designated economies over 1971 to 2019. This study refers to the Solow-Swan model of economic growth as hypothetical framework in its elementary sort and employ factors such as NODA, EDS, savings, capital, depreciation, governance, and in addition total natural resources rent as control variable. Using panel data sourced from WDI (world development indicators). This study employed various econometric techniques comprise FEM (fixed effect model), panel cointegration, panel dynamic least square (DOLS), and Granger causality test for desired regression estimations. Empirical estimations evident that EDS has a negative and significant impact on GDP growth whereas, NODA had a negative and insignificant impact on GDP growth. A positive and significant influence of savings on GDP growth observed and estimation confirm that by increasing 1% in savings may cause an increase in GDP growth by 13.19 units. Capital has a positive and significant impact on GDP growth and estimation outcomes confirm that an increase of 1% in capital may cause an increase of 10.14 units. A negative and significant impact of depreciation on GDP growth revealed and it is intended that increasing 1% in depreciation may cause a decrease in GDP growth by 5.26 units. A positive and significant impact of TNRR on GDP growth revealed and estimations confirm that an increase of 1% in total natural resource rent may cause an increase in GDP growth by 0.099 units. While, impact of governance on GDP growth revealed insignificant. Lastly, it is also endorsed that a uni-directional Granger causality runs from GDP growth to EDS, EDS to NODA, and no causal relationship has been confirmed between NODA and GDP growth in SA and SEA designated economies over 1971 to 2019.

show abstract

Section: Research Elaborationsmentioning

confidence: 99%

External Debt, NODA, and GDP Growth Nexus for South Asian and Southeast Asian Selected Economies

Mazher¹,

Dahalan²

2022

JPOME

View full text Add to dashboard Cite

show abstract

“…Studies conducted by [32,58] emphasized that the macroeconomic policy of a country plays a significant role in making foreign aid effective. However, another study [36,65] provides a contrary opinion that good policy is not required to cause foreign aid to be effective.…”

Section: Introductıonmentioning

confidence: 99%

Do foreign aid triggers economic growth in Chad? A time series analysis

et al. 2021

View full text Add to dashboard Cite

This study explores the nexus between foreign aid and Chad's economic growth. Empirical evidence is based on annual data from 1982 to 2018. The study used ARDL, FMOLS, and DOLS techniques to establish interconnection among the economic indicators. Subsequently, the study utilized the wavelet coherence technique to capture causality and correlation between economic growth and the independent variables. One of the wavelet approach's uniqueness is that it shows the pattern and behavior of the variables used, including the different time horizons. Thus, we explore the dynamic influence of gross capital formation, foreign aid, import, and export on Chad's economic growth. The result of the ARDL long-run estimates reveals that gross capital formation and foreign aid exert insignificant impact on GDP growth. However, exports and imports exert a positive and significant impact on GDP growth. Furthermore, the global financial crisis has a negative and significant impact on the economy of Chad. The outcomes of the wavelet coherence test provide supportive evidence for the ARDL long-run outcomes. Hence, we suggested that substantial macroeconomic reforms and economic liberalization initiatives will help in the dissemination of information and promote domestic investment and importation of high-tech goods.

show abstract

Impact of Foreign Aid on Economic Growth of Ethiopia

Dagne

2024

The Indian Economic Journal

View full text Add to dashboard Cite

This study examines the impact of foreign aid on growth in Ethiopia based on time series data from 1980 to 2019. This study uses Autoregressive distributed Lag and an Error Correction to determine the long- and short-run impacts of foreign aid on growth. The empirical results show that, in the long run, foreign aid has a negative and insignificant effect on real GDP growth. However, gross domestic savings, exports, and inflation exert positive and insignificant impacts on GDP growth. Furthermore, Human capital and gross consumption expenditure exert a positive and significant impact on GDP growth, and gross capital information has a negative and significant impact on GDP growth. Thus, Ethiopia’s national development policy should focus on the productive utilisation of domestic savings to increase GDP growth rather than depend on external capital inflow, which is uncertain even when donor countries face long recessions. JEL Codes: E1, E2, E3

show abstract

The Aid, Macroeconomic Policy Environment and Growth Nexus: Evidence from Selected Asian Countries

Cited by 3 publications

References 28 publications

External Debt, NODA, and GDP Growth Nexus for South Asian and Southeast Asian Selected Economies

External Debt, NODA, and GDP Growth Nexus for South Asian and Southeast Asian Selected Economies

Do foreign aid triggers economic growth in Chad? A time series analysis

Impact of Foreign Aid on Economic Growth of Ethiopia

Contact Info

Product

Resources

About