Research Article Open Access
Despite the fact that, Tanzania is receiving large inflows of foreign aid since 1970s to support its economic activities. Yet, very few literatures investigated the impact of foreign aid to economic growth of Tanzania. After revealing that, despite the large inflows of foreign aid in Tanzania, the economic growth rate is apparently low, poverty level and budget deficits is still persisting over the economy. Thus our study intends to further investigate the impact of foreign aid to economic growth by using Dynamic Ordinary Least Square (DOLS). After using endogenous growth model and time series data from 1976-2014, we found that, foreign aid has negative impact to the economic growth. Furthermore, in short run we also found that, foreign aid does not Granger Cause economic growth. The results suggest that, the government has to reconsider the type of foreign aid that is received.
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Author(s): Albiman MM
Foreign aid, Economic growth, DOLS, Tanzania, Accounting Review, International Business, Indexation, Profitability, Time Series, Panel Data, Empirical Analysis, Stock Market Returns, Human Capital, Monetary Policy , Small Firms, Business Cycle, Banking Research Studies, Capital Structure, Economics Studies, Financial plan, Fiscal and tax policies , Avenues of Investment, Wealth Management, Business Theory, Organizational studies, Parameter Estimation