FOREIGN AID DECREASE – THREAT FOR MILLENNIUM DEVELOPMENT GOLAS?

Klaudia Lindtnerová

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International Development and Aid Economic Growth and Productivity Economic Growth and Development

Abstract

This paper investigates the relationship between foreign aid and growth in real GDP per capita in Africa in the period 1980 – 2012 using regression. It examines whether foreign aid flows have any effect on the effectiveness of foreign aid and Millennium Development Goals. The results show that the effect of aid on economic growth in Africa is not significant. The paper concludes that the quantity of foreign aid flows is not a significant determinant of GDP growth in Africa. The recent decrease of foreign aid flows should not poses any threat to achieving Millennium Development Goals.

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References

n.d.Aid, Policies, and Growth 1982Booming Sector and De-Industrialisation in a Small Open Economy 2000Who Gives Foreign Aid to Whom and Why?1992Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985 1967Foreign Assistance and Economic Development 1996Politics and the effectiveness of foreign aid 2008Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa 2001Aid and growth regressions

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