Official development assistance (ODA), public spending and economic growth in Ethiopia

2012 ◽  
Vol 4 (8) ◽  
Author(s):  
Tofik Siraj
Keyword(s):  
Economic Growth ◽  
Development Assistance ◽  
Public Spending ◽  
Official Development Assistance

scholarly journals Impact of foreign direct investment, remittances and official development assistance on economic growth: panel data approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amna Zardoub ◽  
Faouzi Sboui
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Development Assistance ◽  
Business Environment ◽  
Official Development Assistance ◽  
Financial Flows ◽  
Content Type

PurposeGlobalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be criticized through its impact on national economies. On the other hand, the world economy is evolving in a liberalized environment in which foreign direct investment plays a fundamental role in the economic development of each country. The advent of financial flows – FDI, remittances and official development assistance – can be a key factor in the development of the economy. The subject of this article is to analyses the effect of financial flows on economic growth in developing countries. Empirically, different approaches have been employed. As part of this work, an attempt was made to use a panel data approach. The results indicate ambiguous effects and confirm the results of previous work.Design/methodology/approachThe authors seek to study the effect of foreign direct investment, remittances and official development assistance (ODA) and some control variables i.e. domestic credit, life expectancy, gross fixed capital formation (GFCF), inflation and three institutional factors on economic growth in developing countries by adopting the panel data methodology. Then, the authors will discuss empirical tests to assess the econometric relevance of the model specification before presenting the analysis of the results and their interpretations that lead to economic policy implications. As part of this work, the authors have rolled panel data for developing countries at an annual frequency during the period from 1990 to 2016. In a first stage of empirical analysis, the authors will carry out a technical study of the heterogeneity test of the individual fixed effects of the countries. This kind of analysis makes it possible to identify the problems retained in the specific choice of econometric modeling to be undertaken in the specificities of the panel data.FindingsThe empirical results validate the hypotheses put forward and indicate the evidence of an ambiguous effect of financial flows on economic growth. The empirical findings from this analysis suggest the use of economic-type solutions to resolve some of the shortcomings encountered in terms of unexpected effects. Governments in these countries should improve the business environment by establishing a framework that further encourages domestic and foreign investment.Originality/valueIn this article, the authors adopt the panel data to study the links between financial flows and economic growth. The authors considered four groups of countries by income.

THE IMPACTS OF BIASED RESOURCE ALLOCATION ON THE EFFECTIVENESS OF OFFICIAL DEVELOPMENT ASSISTANCE

2018 ◽  
Vol 65 (01) ◽  
pp. 239-256
Author(s):  
SUNG-KO LI ◽  
CHUN-KEI TSANG
Keyword(s):  
Economic Growth ◽  
Resource Allocation ◽  
Developing Countries ◽  
Data Envelopment Analysis ◽  
Development Assistance ◽  
Official Development Assistance ◽  
Data Envelopment ◽  
Allocation Of Resources ◽  
Negative Impacts

Many developing countries are receiving official development assistance (ODA). Whether ODA is beneficial or harmful to the receiving country is controversial in the literature. This paper analyzes this issue from a new angle by adopting the framework of competitiveness which allows us to link resource allocation with economic growth. Under this framework, we point out that the mechanism of resource allocation influences the effectiveness of ODA on economic growth. By applying data envelopment analysis (DEA) to competitiveness, we capture the effects of inefficient and biased allocation of resources on ODA. The data confirm the co-existence of positive and negative impacts of ODA. Finally, we conclude that current ODA is not efficient in helping most of the receiving countries.

scholarly journals Economic Growth and Total Factor Productivity in Lebanon

2017 ◽  
Vol 9 (2) ◽  
pp. 159
Author(s):  
Wadad Saad
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Total Factor Productivity ◽  
Significant Relationship ◽  
Development Assistance ◽  
Direct Foreign Investment ◽  
Official Development Assistance ◽  
Factor Productivity ◽  
Distributed Lag ◽  
Determinants Of Economic Growth

This study investigates empirically the determinants of economic growth and total factor productivity in Lebanon over the period 1980-2014. To do so, we firstly estimate the total factor productivity in a growth accounting framework. Secondly, an Autoregressive Distributed Lag (ARDL) modeling approach has been applied to examine the relationship between economic growth and some macroeconomic variables such as foreign direct investment, openness, claims on private sector, and official development assistance. Then we consider modeling the effects of these macroeconomic determinants on TFP through an ARDL model. Findings of the regression analysis suggest the presence of a statistically significant relationship between economic growth and the variables involved in this study except for claims on private sector which appears to be insignificant. The results of TFP model show a significant relationship with claims on private sector and openness on one hand and insignificant link with the direct foreign investment and official development assistance on the other hand.

scholarly journals Effect of International Capital Inflows on Economic Growth of Nigeria

2019 ◽  
pp. 13-25
Author(s):  
Okoro, C. O. ◽  
Nzotta, S. N. ◽  
Alajekwu, U. B.
Keyword(s):  
Economic Growth ◽  
Development Assistance ◽  
External Debt ◽  
Official Development Assistance ◽  
Least Square ◽  
Capital Inflows ◽  
International Capital ◽  
Explanatory Variables ◽  
Positive Effects ◽  
Long Run

The study examined the effect of international capital inflows on economic growth of Nigeria for the periods, 1986 to 2016. The study employed four core channels of international capital inflows which includes foreign direct investment (FDI), official development assistance (ODA), personal remittances (REM), and external debt stock (EXTDS) into Nigeria as the explanatory variables and GDP growth rate as the dependent variable. The model of the study was hinged on the Harrod-Domar growth model and employed Johansen co-integration and Ordinary Least Square (OLS) techniques for data analyses. The result showed that international capital inflows have long run effect on economic growth of Nigeria. Specifically, the OLS revealed that FDI and REM had significant positive effects on economic growth. However, EXTDS and ODA had no significant effects on economic growth. The study further showed that international capital is a powerful tool for boosting economic growth of Nigeria(R-square = 71%). The recommendations among others include that policy makers should forthwith discourage the use of external debt and official development assistance in Nigeria.

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