DOES FOREIGN AID IMPACT ON ECONOMIC GROWTH IN NIGERIA?

Authors

  • Jonathan E Ogbuabor Department of Economics, University of Nigeria, Nsukka
  • Cletus C Agu Department of Economics, University of Nigeria, Nsukka
  • Caroline O Odo Department of Agricultural Economics, Michael Okpara
  • Johnson E Nchege Department of Economics, University of Nigeria, Nsukka

Keywords:

Foreign Aid, Economic Growth, Global Financial Crisis, ARDL Model

Abstract

This paper examines the aid-growth relationship in Nigeria following the 2007-08 Global Financial Crisis (GFC), using time series data for the period 1970 – 2014,  autoregressive distributed lag (ARDL) and dummy variable models. The results indicate that foreign aid impacts positively on economic growth in Nigeria, both in the long- and short-run. This suggests that donor countries should acquaint themselves with the socio-economic and political realities of the domestic economy in Nigeria so that official development assistance offered to Nigeria is shielded from corruption and bad governance. However, the results further show that the GFC significantly altered the aid-growth relationship in Nigeria, such that the results of this study and the bulk of existing empirical studies for Nigeria should be interpreted with care. 

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Published

2017-06-25

How to Cite

Ogbuabor, J. E., Agu, C. C., Odo, C. O., & Nchege, J. E. (2017). DOES FOREIGN AID IMPACT ON ECONOMIC GROWTH IN NIGERIA?. JOURNAL OF ECONOMICS AND ALLIED RESEARCH, 2(1), 12–24. Retrieved from http://jearecons.com/index.php/jearecons/article/view/39

Issue

Vol. 2 No. 1 (2017): June

Section

Articles