Advanced Search
MyIDEAS: Login to save this article or follow this journal

Foreign Aid and Economic Growth in Ethiopia: A Cointegration Analysis

Contents:

Author Info

  • Tasew Tadesse

    ()
    (Department of Economics, Dilla University)

Abstract

Poor countries lack sufficient domestic resources to finance investment and the foreign exchange to import capital goods and technology. The existing situation in Ethiopia is a living example of the scenario which binds economic growth. In this paper the unresolved question of aid effectiveness (usually measured by its impact on economic growth) in Ethiopia using a time series data covering the period 1970 to 2009 is addressed by employing multivariate cointegration technique. Foreign aid entered alone has a positive role in enhancing growth. However, the aid-policy interaction term has produced a significant negative effect on growth implying the deleterious impact of bad policies in constraining aid effectiveness. The overall effect of aid on economic growth over the period considered turns out to be negative due to lack of good policies. This paper indicates also that the country has no problem of capacity constraint as to the flow of foreign aid.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ecrg.ro/files/p2011.1(2)3b4.pdf
Download Restriction: no

Bibliographic Info

Article provided by Weissberg Publishing in its journal Economic Research Guardian.

Volume (Year): 1 (2011)
Issue (Month): 2 (December)
Pages: 88-108

as in new window
Handle: RePEc:wei:journl:v:1:y:2011:i:2:p:88-108

Contact details of provider:

Related research

Keywords: Foreign aid; Economic growth; Policy; Cointegration; Ethiopia;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wei:journl:v:1:y:2011:i:2:p:88-108. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mihai Mutascu).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.