Authors : P.B. Eregha
Abstract: This study examines the growth and determinants of foreign aid allocation to Nigeria. This study is necessitated by the fact that most studies examines this issue with either panel data analysis or cross country analysis framework, which do not really show specific country characteristics and moreover, there is no time series analysis on the determinants of foreign aid allocation in Nigeria. The study employed Ordinary Least Square method of estimation with an autoregressive model to examine the short run and long run coefficients of the determinants. Data for the study were mainly secondary source extracted from the World Development Indicator, 2007. The study revealed that both at the short run and steady state, national income per capita, total debt service, population and domestic saving all have positive impacts in the determination of foreign aid allocation to Nigeria. However, net barter term of trade has negative impact on it. The study then recommends that policies aim at reducing the dependency and proper use of foreign aid be implemented.
P.B. Eregha , 2009. Foreign Aid Growth and Determinants in Nigeria: An Autoregressive Framework. Pakistan Journal of Social Sciences, 6: 309-312.