The Impact of Foreign Aid in Economic Growth: An Econometric Analysis of Bangladesh

Binata Rani Sen, Tania Islam, Aminun Nahar and Md. Farid Dewan

International Journal of Science and Business, 2019, vol. 3, issue 2, 138-145

Abstract: Foreign aid is one of the most important policy tools that rich countries use for helping poor countries to improve population well-being and facilitate economic and institutional development. Bangladesh shows much dependency on the developed countries like as foreign aid. We have a great contribution of foreign aid in our GDP. The empirical evidence on its benefits is mixed and has generated much controversy. This paper estimates six separate models by investigating the 20 years data for 1996-97 to 2015-16 periods in Bangladesh which shows that foreign aid to very poor countries accounts for very little of total global aid; reviews the evidence that foreign aid is often determined by the objectives of donor countries rather than the needs of the recipient countries; argues that the evidence on the impact of aggregate foreign aid is hindered by problems of measurement and identification, which are partly due to the different nature of aid. Application of this study is to identify the role of foreign aid in our economy. This study takes an important role by giving information about the real growth of the economy of Bangladesh after taking foreign aid from foreign countries.

Keywords: Foreign aid; Effects; Satisfaction; Economic Growth; global aid; GDP; Bilateral; Multilateral (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ijsab.com/wp-content/uploads/333.pdf (application/pdf)
https://ijsab.com/volume-3-issue-2/1836 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aif:journl:v:3:y:2019:i:2:p:138-145

Access Statistics for this article

International Journal of Science and Business is currently edited by Dr. Md Shamim Hossain

More articles in International Journal of Science and Business from IJSAB International
Bibliographic data for series maintained by Farjana Rahman ().