摘要：An overall analysis of cross-country empirical studies published from the late sixties to date reveals significant relationship between foreign aid and economic growth. But it is interesting to note that after half a century of channeling resources to the Third World, little development has taken place. This study however examined the extent of the impact of foreign aid on economic growth in Nigeria. The paper employed standard statistical method, Vector Autoregressive Model, (VAR) to determine the sources of shock to growth in Nigeria and treated foreign aid as an endogenous variable. The study found a negative relationship between foreign aid and output growth, which imply that foreign aid tend to worsen output growth in Nigeria rather than improving it. The findings of the study support our earlier discovery on aid fungibility, which argue that foreign aid did not promote growth in Sub-Sahara Africa. Taken together, the findings have important implications for policy. Since huge estimates of foreign aid suggest a huge potential for economic growth, the government should make efforts towards the implementation and effective utilization of foreign aid. An appropriate policy measures that would monitor the maximum and effective utilization of foreign aid is however required.
关键词：Foreign aid; Economic growth; Official development assistance; Vector Autoregressive Model and Public expenditures.
