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Does Developmental Aid Impact or Impede on Growth: Evidence from Nigeria

Author

Listed:
  • Iyabo A. Olanrele

    (Nigerian Institute of Social and Economic Research (NISER), Ibadan, Nigeria.)

  • Taofik Mohammed Ibrahim

    (Nigerian Institute of Social and Economic Research (NISER), Ibadan, Nigeria.)

Abstract

This paper examines the effect of four different types of developmental aid on economic growth in Nigeria utilizing the Two-Stage Least Square (2SLS) estimation technique between 1970 and 2012. The empirical estimates show that multilateral aid had more impact on growth compared to bilateral aid from Nigerian's trading partners, top-five CDI ranked countries, and Nordic countries. Our findings support the need for stringent conditionalities and standard monitoring and evaluation framework by donors in order to promote meaningful impact of developmental aid on economic growth.

Suggested Citation

  • Iyabo A. Olanrele & Taofik Mohammed Ibrahim, 2015. "Does Developmental Aid Impact or Impede on Growth: Evidence from Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 288-296.
    • Handle: RePEc:eco:journ1:2015-01-24
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    References listed on IDEAS

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    Cited by:

    1. Iyabo Adeola Olanrele & Segun Subair Awode, 2020. "Development Aid and Human Capital Development in Nigeria: A Sector Level-Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(1), pages 25-35.
    2. Pierre E. Biscaye & Travis W. Reynolds & C. Leigh Anderson, 2017. "Relative Effectiveness of Bilateral and Multilateral Aid on Development Outcomes," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1425-1447, November.
    3. Tiamiyu, Kehinde A., 2019. "Foreign aid and economic growth: Does non-linearity matter?," MPRA Paper 108588, University Library of Munich, Germany, revised Jul 2109.

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    More about this item

    Keywords

    Developmental aid; Economic Growth; Nigeria;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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