Impact of foreign aid and foreign direct investment on economic growth: evidence from Sub-Saharan African countries
The purpose of this study is to examine the impact of foreign aid and FDI on economic growth of Sub-Saharan African countries. The generalized method of moments is applied on 41 countries covering the period of 1998 to 2010. The results suggest that while foreign aid has negative effect on growth,...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
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| Online Access: | http://journalarticle.ukm.my/8405/ http://journalarticle.ukm.my/8405/ http://journalarticle.ukm.my/8405/1/jeko_48%281%29-6.pdf |
| Summary: | The purpose of this study is to examine the impact of foreign aid and FDI on economic growth of Sub-Saharan African
countries. The generalized method of moments is applied on 41 countries covering the period of 1998 to 2010. The
results suggest that while foreign aid has negative effect on growth, the impact of FDI is positive but statistically
insignificant. Furthermore, we found evidence that foreign aid from different bilateral donors may have different effects
on economic growth. |
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