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Foreign Aid, Policy Effectiveness and Economic Growth in Tanzania

Author

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  • Chee-Keong Choong
  • Toy Jun Zheng
  • Lu Wu Tiong

Abstract

: Doubts have always remained in the claim of foreign aid contributing towards the economic growth of the recipients. This paper, therefore, aims to study the effects of aid on the Tanzanian economic growth, the largest aid recipient in average, through Autoregressive Distributed Lag (ARDL) modeling. The relevancy of the presence of sound policies in affecting the effectiveness of aid is also studied and an index for policies is constructed. The results show that aid contributes positively towards the Tanzanian economic growth and sound policy would enhance the effectiveness of aid, although it is not a necessity.

Suggested Citation

  • Chee-Keong Choong & Toy Jun Zheng & Lu Wu Tiong, 2010. "Foreign Aid, Policy Effectiveness and Economic Growth in Tanzania," The IUP Journal of Applied Economics, IUP Publications, vol. 0(2), pages 46-60, April.
    • Handle: RePEc:icf:icfjae:v:09:y:2010:i:2:p:46-60
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    Cited by:

    1. Ibhagui, Oyakhilome W., 2020. "The Economic Performance Effects of Capital Flows in OPEC Member Countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 67-83.
    2. Samuel Adams & Edem Kwame Mensah Klobodu & Richmond Odartey Lamptey, 2017. "The Effects of Capital Flows on Economic Growth in Senegal," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(2), pages 121-142, May.

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