Regression analysis of the relationship between economic growth and foreign aid in Africa

Jean Gabin Ngango

Master's thesis

Anotácia:

This thesis explores the impact of foreign aid on growth in Africa. It focuses on whether foreign aid has an effect on capital accumulation and GDP growth. The dataset spans five years, from 2014 to 2018 for 44 countries. According to the regression results, foreign aid has non-linear relationship with economic growth. Foreign aid has a significant impact on investment and economic growth with diminishing returns. Foreign aid has no significance impact on saving as it fails to impact incentives to when choosing between present and future consumption.

Abstract:

This thesis explores the impact of foreign aid on growth in Africa. It focuses on whether foreign aid has an effect on capital accumulation and GDP growth. The dataset spans five years, from 2014 to 2018 for 44 countries. According to the regression results, foreign aid has non-linear relationship with economic growth. Foreign aid has a significant impact on investment and economic growth with diminishing returns. Foreign aid has no significance impact on saving as it fails to impact incentives to when choosing between present and future consumption.

Kľúčové slová

Foreign aid, Economic growth, null hypothesis, alternative hypothesis, Ordinary least squares

Keywords

Economic growth, null hypothesis, Foreign aid, alternative hypothesis, Ordinary least squares

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 15. 10. 2020

Obhajoba závěrečné práce

• Obhajoba proběhla 3. 6. 2021
• Vedúci: Milan Bašta
• Oponent: Karel Helman

Vysoká škola ekonomická v Praze

Master programme / odbor:
Kvantitativní metody v ekonomice / Quantitative Economic Analysis