IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/128783.html

Effect of Foreign Aid on Domestic Saving in Tanzania

Author

Listed:
  • Ndanshau, Michael O.A.
  • Joseph, Cornel

Abstract

This study sought to establish the relevance of the classical view that foreign aid complements domestic savings, using Tanzania’s time-series data for 1966-2023. The empirical investigation was based on the Autoregressive Distributed Lag (ARDL) bounds cointegration technique. The empirical results show that aid augmented and substituted for domestic savings in Tanzania in both the short and long run. The study's findings suggest that the government in Tanzania should be wary of seeking aid, as doing so significantly reduces domestic savings in the short run. Moreover, the government should continue implementing policies that support aid for sustainable long-term growth.

Suggested Citation

  • Ndanshau, Michael O.A. & Joseph, Cornel, 2025. "Effect of Foreign Aid on Domestic Saving in Tanzania," MPRA Paper 128783, University Library of Munich, Germany, revised 19 Apr 2026.
    • Handle: RePEc:pra:mprapa:128783
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/128783/1/MPRA_paper_128783.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:128783. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.