Studying the impacts of foreign aid on economic growth and human development index in Afghanistan (1960-2020)
Conference Year
January 2022
Abstract
The aim of this thesis is to study the impact of foreign aid on economic growth measured by real gross domestic product (GDP) in Afghanistan from 1960 to 2020. After the 9/11 attacks the U.S. and its European allies invested heavily in Afghanistan to promote democracy and establish a functioning state. In addition, many other nations such as Japan, Canada, India, and Australia also provided humanitarian assistance to the war-ravaged economy of Afghanistan. This study will use time series regression (1960-2020) and use auto regressive distributed lag model (ARDL). This study focuses on studying if there is a positive correlation between foreign aid and economic growth (GDP). And if there is any correlation between higher GDP and higher HDI. However, other variables such as exports, foreign direct investment are also included to make the analysis more comprehensive. We found that foreign aid increased GDP in the first lag but reverses itself in the second lag period.
Primary Faculty Mentor Name
Asim Zia
Status
Graduate
Student College
College of Agriculture and Life Sciences
Program/Major
Community Development and Applied Economics
Primary Research Category
Social Sciences
Studying the impacts of foreign aid on economic growth and human development index in Afghanistan (1960-2020)
The aim of this thesis is to study the impact of foreign aid on economic growth measured by real gross domestic product (GDP) in Afghanistan from 1960 to 2020. After the 9/11 attacks the U.S. and its European allies invested heavily in Afghanistan to promote democracy and establish a functioning state. In addition, many other nations such as Japan, Canada, India, and Australia also provided humanitarian assistance to the war-ravaged economy of Afghanistan. This study will use time series regression (1960-2020) and use auto regressive distributed lag model (ARDL). This study focuses on studying if there is a positive correlation between foreign aid and economic growth (GDP). And if there is any correlation between higher GDP and higher HDI. However, other variables such as exports, foreign direct investment are also included to make the analysis more comprehensive. We found that foreign aid increased GDP in the first lag but reverses itself in the second lag period.