The Impact of Foreign Aid on Domestic Saving, Investment and Economic Growth: The Case of Ethiopia
No Thumbnail Available
Date
2001-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The objective of the study is to examine the relationship between
foreign aid and domestic saving investment and economic growth in
Ethiopia for the period 1964/65 to 1998/99. The analysis makes use
of the Johansen maximum likelihood estimation procedure.
The main findings are: foreign grant has a negative and significant
impact on saving, investment and growth, while foreign loan has a
positive and significant impact on above mentioned economic
performance indicator. Applying the Error Correction MODEL (ECM),
foreign grant and loan are insignificant through out the model in the
short-run.
Description
Keywords
Domestic Saving, Investment