Foreign Aid, Economic Growth, and Policies

Foreign Aid, Economic Growth, and Policies

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Official Development Assistance, simply known as foreign aid,is the transfer of resources from the public sector of advanced economies in the form of grants and concessional loans to the developing world. Economic growth of the recipients is considered to be the prime objective of foreign aid. However,the literature has not reached a consensual outcome regarding the achievement of this objective, primarily because of the lack of a standard economic model to explain the scenario thoroughly.This research concentrates on the aid-growth nexus under various macroeconomic policies.This may prove helpful to the students interested in development economics.

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