The effect of foreign aids on economic growth of Afghanistan during the years (2002 to 2018)
Author(s): Hafizullah Aiuby and Mohammad Aziz Azimi
Abstract: As per the international economics theories, one of the challenges of developing countries is lack of capital and financial resources and it should be eliminated by every possible way. Afghanistan is also one of these countries from long before more or less this country needs foreign aid specially this dependency after 2001 has been increased. Oral promises of the donors were more but Afghanistan till end of 2018 has received almost 119 billion dollars cash. This aid has effect on economic growth of the country. In this article the effect of foreign aids on economic growth of Afghanistan has been discussed by using the library research method. The data of this research is for a period of 17 years from (2002 to 2018) has been downloaded from central statistics website. The data has been analyzed by using E-views software with the help of OLS model. Several tests on data have been done, the research results during the years show a positive relation. If the foreign aids change 1%, GDP will change 0.72% also on the other hand if we assume the other factors which have an effect on economic growth of the country to be stable; it shows that foreign aids only can provide 0.25% of economic growth.
Hafizullah Aiuby, Mohammad Aziz Azimi. The effect of foreign aids on economic growth of Afghanistan during the years (2002 to 2018). Int J Adv Acad Stud 2020;2(4):302-307. DOI: 10.33545/27068919.2020.v2.i4e.411
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