The Impact of Foreign Aid on Economic Growth of East African Countries

摘要

In this paper, we employ panel data methods, namely Pooled OLS, Random Effects, and Fixed Effects, to examine the impact of foreign aid on economic growth of East African countries over the period of 1985 to 2010. The results suggest that foreign aid has significant negative influence on economic growth for these countries. This calls for further studies to investigate the possible channels through which foreign aid can have positive influence on growth.