The Impact of Foreign Aid in Economic Growth: An Econometric Analysis of Bangladesh
Author (s):
Binata Rani Sen, Tania Islam, Aminun Nahar & Md. Farid Dewan
Abstract
Foreign aid is one of the most important policy tools that rich countries use for helping poor countries to improve population well-being and facilitate economic and institutional development. Bangladesh shows much dependency on the developed countries like as foreign aid. We have a great contribution of foreign aid in our GDP. The empirical evidence on its benefits is mixed and has generated much controversy. This paper estimates six separate models by investigating the 20 years data for 1996-97 to 2015-16 periods in Bangladesh which shows that foreign aid to very poor countries accounts for very little of total global aid; reviews the evidence that foreign aid is often determined by the objectives of donor countries rather than the needs of the recipient countries; argues that the evidence on the impact of aggregate foreign aid is hindered by problems of measurement and identification, which are partly due to the different nature of aid. Application of this study is to identify the role of foreign aid in our economy. This study takes an important role by giving information about the real growth of the economy of Bangladesh after taking foreign aid from foreign countries.
Key words: Foreign aid, Effects, Satisfaction, Economic Growth, global aid, GDP, Bilateral, Multilateral
| Title: |
The Impact of Foreign Aid in Economic Growth: An Econometric Analysis of Bangladesh |
|---|---|
| Author: |
Binata Rani Sen, Tania Islam, Aminun Nahar & Md. Farid Dewan |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.5281/zenodo.2604487 |
| Media: | Online |
| Volume: | 3 |
| Issue: | 2 |
| Acceptance Date: | 22/03/2019 |
| Date of Publication: | 24/03/2019 |
| PDF URL: | https://ijsab.com/wp-content/uploads/333.pdf |
| Free download: | Available |
| Page: | 138-145 |
| First Page: | 138 |
| Last Page: | 145 |
| Current Status: | Published |
Cite This Article:
Sen, B. R., Islam, T., Nahar, A. & Dewan, M. F. (2019). The Impact of Foreign Aid in Economic Growth: An Econometric Analysis of Bangladesh. International Journal of Science and Business, 3(2), 138-145. doi: https://doi.org/10.5281/zenodo.2604487
Retrieved from https://ijsab.com/wp-content/uploads/333.pdf
About Author
Binata Rani Sen, (Corresponding Author) Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh.
Tania Islam, Department of Economics, Bangabandhu Sheikh Mujibur Rahman Science & Technology University, Gopalganj, Bangladesh.
Aminun Nahar, Research Fellow, Bangladesh Agricultural University, Mymensingh, Bangladesh.
Md. Farid Dewan, Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh.
DOI: https://doi.org/10.5281/zenodo.2604487