Foreign aid and its impact on socio-economic development in nigeria pdf

This is because the impact of foreign aid on real sectors such as education, primary healthcare, and agriculture. Foreign aid is very important for the acceleration of economic. This has compelled the nigerian government in recent time to request for foreign assistance from countries such as usa, israel, and eu countries to combat the rising waves of terrorism and insecurity. Aug 28, 2016 for example, addison, mavrotas and mcgillivray 2005 find evidence for positive impact of foreign aid on growth. The impact of foreign direct investment on nigeria economic growth 19812016 pdf will be the focus of this research. However, this study seeks to examine the impact of foreign aids particularly the role of world health organization as international donor. Foreign aid can have positive effect on economic growth, through public. Pdf structural adjustment programme in nigeria and its. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. Second, emphasis is placed on understanding if levels of corruption moderate the effect of foreign aid on socio economic development. Foreign aid, economic growth and efficiency development, and is the first of a series of studies investigating aid effectiveness in a production theory context.

Insecurity and socioeconomic development in nigeria olabanji olukayode ewetan phd, ese urhie phd department of economics and development studies, covenant university, p. Mounjoy, a, 2007 foreign aid from developed countries and international organizations has become an important solution to the development of the human and material resources of these countries as the cure for the ills of underdevelopment, with its high degree of success held to be related to the high degree of foreign capital investment. One purpose of the report is to investigate whether foreign aid improves the efficiency of resource use in a country in the short term. An impact assessment of deregulations muse bernard olagboyega rufus giwa polytechnic, department of mathematics and statistics, rufus giwa polytechnic, owo, ondo state, nigeria. They serve as conduits for disseminating aid western aid, especially in periods of national crisis. Impact of foreign aid on poverty and economic development in nigeria 16050 words 65 pages. Structural adjustment programme in nigeria and its implication on socioeconomic development, 19801995 in the ca labar historical journal, vol. The study examined the influence of deregulation on the relationship between foreign aid and fiscal. Foreign aid, institutions and economic development in nigeria. This study examines the effect of foreign aid on economic growth and corruption in.

Second, emphasis is placed on understanding if levels of corruption moderate the effect of foreign aid on socioeconomic development. Nonoil export was also found to be positively and significantly impacting to economic growth in nigeria proxied by gdp. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the international monetary fund imf and world bank. The debtors can be the government, corporations or citizens of another country. There is a high volume of literature on the impact of foreign aid on development in africa, yet not many of them recognize all the factors that contribute to aid in effectiveness. Socioeconomic impact of ebola virus disease in west. Structural adjustment programme in nigeria and its implication on socioeconomic development, 19801995 in the ca. Foreign aid is an essential instrument used to improve the socio economic development of developing countries. In the first subsection the arguments in favour of foreign aid are discussed and we see what positive role it plays in the economic development of developing countries.

This paper adopts a deductive approach to explaining aid and development in africa. Impact of foreign aid on economic development in pakistan 19602002 by. Impact of foreign aid on poverty and economic development in. This paper analyses the impact of foreign aid on economic growth in nigeria during the period of 19702010. Globalization and the socio economic development of the. Impact of foreign direct investment on nigeria economic growth. The main objective of this study is to evaluate the impact of foreign aid on the socio economic development of nigeria. The debate on how aid can be effective and contribute to africas development is, however, still ongoing without any clear way forward.

The impact of foreign aid on lowincome communities in nigeria a dissertation presented to the development finance centre defic, graduate school of business university of cape town in partial fulfilment of the requirements for the degree master of commerce in development finance by temitayo abolade march 2018 supervisors. It is obvious that the situation especially that of youth unemployment affected nigerias progress in several ways. To explore the impact of foreign aid on socioeconomic development in. For example, addison, mavrotas and mcgillivray 2005 find evidence for positive impact of foreign aid on growth. Pdf foreign aid, institutions and economic development in. This sadev report is part of the wider project theme. The effect of foreign aid on economic growth in developing. Initially aid was given to the wardevastated countries to rebuild the economies. Furthermore, who as donor agency of foreign aid to nigeria, its top priority is to. The study emphasize on the politics of foreign aid and nigerias economic development, which brings to light the real politics surrounding foreign aid, and its.

But for the successful completion of the study the researcher intends to achieve the following subobjective. So, does foreign aid have a positive impact on recipient countries growth. This study therefore seeks to look at the impact of foreign aids on socioeconomic development of the third world countries, especially nigeria. Previous foreign aid and government expenditures on local communities in nigeria were not judiciously utilized in achieving the required economic growth and development, so its socioeconomic impact was minimal. Chauvet, 2001, socioeconomic policy and institutional quality collier and. Analysis of the short and mediumterm costs of the ebola epidemic. The impact of foreign aid on lowincome communities in nigeria. Second, the effects of development aid critically depend on the political equilibrium in the recipient country. The impact of china on social and economic development in. This is particularly relevant given the huge gap between the countrys high economic growth and low performance in the areas of employment, poverty. In introducing aid, donors should always ask where aid does have its comparative. A regional approach provides an opportunity to raise awareness on the socioeconomic impacts of ebola at the regional level and in each of the 15 countries in west africa.

Foreign aid and its impact on socioeconomic development. The analysis looks first at whether increasing foreign aid contributes to positive socioeconomic development in subsaharan african countries within the context of weak or effective governance measures. Introduction the tradition of giving foreign aid to developing or aid needing country began after world war ii. This is because the impact of foreign aid on real sectors such as education, primary healthcare, and agriculture in similar lowincome. Foreign aid annalouise weston year 12 2012 foreign aid is a noun meaning the economic, technical, or military aid given by one nation to another, for purposes of relief and rehabilitation, for economic stabilization, or for mutual defines. The analysis looks first at whether increasing foreign aid contributes to positive socio economic development in subsaharan african countries within the context of weak or effective governance measures.

Chapter one introduction this project focuses on the poverty profile in nigeria, the foreign aids given to the nation to help alleviate poverty and. Previous empirical studies on foreign aid and economic growth generate mixed results. Aside foreign aid, external borrowing has also over the years attracted much concern as an important aspect of any countrys macroeconomic policy framework. Although the initial intention of foreign aid is to help, we should know that it does have its drawbacks. The impact of foreign aid on lowincome communities in nigeria a dissertation presented to the development finance centre defic. Despite the limitations of the current literature, in this. Many countries situated in africa do receive substantial amount of foreign aids from other countries, international organisations and private philanthropists. Abegaz 2005 find evidence for negative impact of foreign aid and growth, while afdb 2005, afdb 2004 find evidence to suggest that aid has no impact on growth. Impact of foreign direct investment on nigerias economy. The main type of data used in this study is secondary. Foreign aid, economic growth and efficiency development. Unemployment in nigeria has affected the youth and the economic development of the country from a broad spectrum of socioeconomic perspective. Foreign aid is an important issue given its implications. Foreign aid, the international transfer of capital, goods, or services from a country or international organization for the benefit of the recipient country or its population.

At the onset, foreign aid is there to save lives particularly during calamities and disasters, like in the case of natural disasters. Focusing on sadc as a representative regional economic community, a. Objectives of the study the specific objectives are to. Insecurity and socioeconomic development in nigeria. Developing countries are characterized by resource starved economies, specifically capitalrelated.

Evidence of ineffective foreign assistance is widespread in africa. The most common type of foreign aid is official development assistance oda, which is assistance given to promote development and to. The role of foreign aid in the growth process of developing countries has been an issue of intense debate. Impact of foreign direct investment on nigeria economic. Foreign aid is an essential instrument used to improve the socioeconomic development of developing countries.

According to wikipedia 2018 external debt is the total debt a country owes to foreign creditors. The aim of this study is to acknowledge the importance of foreign aid. Chapter one introduction this project focuses on the poverty profile in nigeria, the foreign aids given to the nation to help alleviate poverty and how it affects the economic development of nigeria. The resources can take the form of grants or concessional credits e. Effect of external borrowing and foreign aid on economic. Foreign aid is an important topic given its implications for poverty reduction in developing countries. The linkage between foreign aid and economic growth in nigeria. World financial aid, socio economic development, poverty alleviation. It is distinguished from humanitarian aid as being aimed at alleviating poverty in the long term, rather than alleviating suffering in the short term.

While in the second subsection the discussion relates to the harmful impact of the foreign aid, which shows how it hampers the economic development of developing countries. There are two major international relations theories for interpreting chinas foreign aid policy in africa. The contribution of ngos to africas development and economic growth has moved from a largely marginal role in the early, postindependence days, centred on providing peripheral services, to a central role founded on campaigns for good governance. An empirical investigation of the rnacroeconomic impact of aid that does not take this into account may yield biased results. Promoting and facilitating technology transfer through foreign direct investment fdi has assumed a prominent place in the. Impact of foreign aid on poverty and economic development. Sectoral analysis of impact of foreign aid in nigeria. Introduction there are so many writeups and discussions about smes globally. Statistical bulletin, annual reports and statement of accounts. The vast literature regarding the effects of foreign aid on growth in developing nations is limited by data availability, lack of knowledge regarding how aid affects growth, and economic specification disagreements. In the 1960s, nigeria was on a par, in terms of aspirations to attain a very high level of economic growth and development, with its fellowoil producing and exporting countries such as malaysia and indonesia, but has since failed to keep pace with them. The study emphasize on the politics of foreign aid and nigerias economic development, which brings to light the real politics surrounding foreign aid, and its significant impact on our economic development. Socio economic impact of hiv and aids to nigerian economy. Impact of foreign aid on economic development in pakistan.

The study analyzed the impact of foreign direct investment on nigeria economic growth over the period of 1999 20. Foreign aid can involve a transfer of financial resources or commodities e. Pdf the study investigated the effect of foreign aid on the development of different sectors of the nigerian economy. Promoting and facilitating technology transfer through foreign direct investment fdi has assumed a prominent place in the strategies of economic revival and growth. Our findings shows that aid flows has significant impact on. Foreign aid is an important issue given its implications for poverty reduction in developing countries. Moheyuddin 5 khan 1993 concluded that foreign aid has played an extremely important role in influencing the pace of development, especially investments and imports have to a large extent depended upon the amount of foreign aid. The study reviles that oil export has a positive and significant impact on economic growth in nigeria proxied by gdp. Aid can be economic, military, or emergency humanitarian e. Foreign aid and its impact on socioeconomic development in. This paper examines the pertinent issue of insecurity in nigeria and its implication for. For a country like nigeria, that is keen on fdi inflow it is important to develop a robust framework for measuring and analysing the developmental impact of fdi on its economy and citizens. The role of foreign aid in the growth process of developing countries has been an issueof intense debate.