The Impact of Foreign Aid on Economic Growth of East African Countries

Chung-Yee Liew · Masoud Rashid Mohamed · Said Seif Mzee

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International Development and Aid Natural Resources and Economic Development Economic Growth and Development

Abstract

In this paper, we employ panel data methods, namely Pooled OLS, Random Effects, and Fixed Effects, to examine the impact of foreign aid on economic growth of East African countries over the period of 1985 to 2010. The results suggest that foreign aid has significant negative influence on economic growth for these countries. This calls for further studies to investigate the possible channels through which foreign aid can have positive influence on growth.

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References

2001Econometric Analysis of Cross Section and Panel Data 2021Econometric Analysis of Panel Data n.d.Aid, Policies, and Growth 2003FDI and economic growth: the role of local financial markets 1960The Stages of Economic Growth: A Non-Communist Manifesto.1967Foreign Assistance and Economic Development 2016Growth Based on Increasing Returns Due to Specialization 2008Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa

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