Foreign Aid and Economic Growth in Tanzania: Empirical Analysis in the 1980 to 2015

Hassan, Choray Rukia (2016) Foreign Aid and Economic Growth in Tanzania: Empirical Analysis in the 1980 to 2015. Masters thesis, The Open University of Tanzania.

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Abstract

This thesis investigates the relationship between foreign aid and economic growth in Tanzania from 1980 to 2015. The main objective is to analyze the long run and short run dynamics of Official Development Assistance to the economic growth of Tanzania from 1980 to 2015. An empirical model is estimated using Autoregressive Distributed Lagged (ARDL) approach to co integration for the intention of evaluating of the direct impact of aid on last economic outcome. The empirical result shows that foreign aid has a significant positive role in promoting economic growth in Tanzania. As per results once the foreign aid increase the GDP increase as well once the aid reduced also GDP decline these variable indicate positive association.

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