Economics at your fingertips  

Does Foreign Aid Accelerate Economic Growth? An Empirical Analysis for Nigeria

Ismail Fasanya and Adegbemi Onakoya

International Journal of Economics and Financial Issues, 2012, vol. 2, issue 4, 423-431

Abstract: This paper analyses the impact of foreign aid on economic growth in Nigeria during the period of 1970-2010. The empirical analysis rests on the neo-classical modelling analytical framework and combined several procedures in modern econometric analysis/estimation techniques. Our findings shows that aid flows has significant impact on economic growth in Nigeria: domestic investment increased in response to aid flows and population growth has no significant effect on aid flows. Aid flows also provides free resources to increase domestic investment, thus confirming the aid-policygrowth hypothesis. Therefore, donor governments should be aware of the political situations in recipient countries, and work with international bodies to ensure as much stability as possible. Finally, foreign aid transfers should henceforth pledge to abide by the oath to of doing no harm.

Keywords: Foreign Aid; Policy; Modelling; Economic Growth; Nigeria (search for similar items in EconPapers)
JEL-codes: C01 C51 E13 F35 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link) (application/pdf) (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:

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

Page updated 2019-03-31
Handle: RePEc:eco:journ1:2012-04-5