Has Foreign Aid Influenced Economic Growth in Ghana?
Emmanuel Nkonu The study seeks to find the macroeconomic impact of foreign aid on the economic growth of Ghana using time series data from 1968 to 2002. The estimation approach employed is Ordinary Least Squares (OLS) and pre-testing of the data was done using the Augmented Dickey Fuller (ADF) test. The country benefited enormously from foreign aid since her independence to date, particularly during balance of payment crises and the Economic Recovery Programme (ERP) and thus provides a good basis to investigate aid effectiveness. In order for economic growth to be attained a certain level of investment must be attained. However, in developing countries investment is low because of lack of savings and foreign exchange. The advancement of foreign capital to developing economies is to fill the saving-investment and foreign exchange gaps to promote economic growth. The study finds that foreign aid in its aggregate form has impacted positively on economic growth of Ghana and with the countr
