Research Article


DOI :10.26650/JEPR885246   IUP :10.26650/JEPR885246    Full Text (PDF)

The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan

Muhammad Akbar Farahmand

One of the main goals of foreign aid is to contribute to underdeveloped and developing countries’ economic growth and accelerate their growth. Foreign aid has been provided to Afghanistan by developed and developing countries for many years. Especially after 2001, the flow of foreign aid to Afghanistan started and continues until today. Despite billions of foreign aids provided, the country’s economy still faces lowincome levels, high poverty, and unemployment rates. In this study, the relationship between official development assistance and economic growth was analyzed using the time series method for Afghanistan between 1986 and 2018. For this purpose, ADF and Phillips-Perron (PP) unit root tests were performed to stabilize the series used. Then, after the lag length was determined, the Johansen cointegration test was conducted to test whether these two variables move together in the long run. As a result of the test, a cointegration relationship between variables has been proved. The Granger causality test based on the error correction model was conducted to investigate the causality relationship between these two variables. As a result, a one-way causality relationship from the received official development assistance to economic growth was determined. Finally, the results of variance decomposition support the result of the Granger causality test.

JEL Classification : C51 , C32 , F35 , O4
DOI :10.26650/JEPR885246   IUP :10.26650/JEPR885246    Full Text (PDF)

Ekonomik Büyüme ile Dış Yardımlar Arasındaki İlişki: Afganistan Örneği

Muhammad Akbar Farahmand

Dış yardımların temel hedeflerinden biri, az gelişmiş ve gelişmekte olan ülkelerin ekonomik büyümelerine katkı sağlaması ve büyümelerini hızlandırmasıdır. Afganistan’a uzun yıllardır gelişmiş ve gelişmekte olan ülkeler tarafından dış yardımlar yapılmaktadır. Özellikle 2001 yılından sonra Afganistan’a dış yardım akışı başlamış ve bu dış yardım hala devam etmektedir. Milyarca dış yardım sağlanmasın rağmen, hala ülke ekonomisi düşük gelir seviyesi, yüksek yoksulluk ve işsizlik oranı ile karşı karşıyadır. Bu çalışmada, alınan resmi kalkınma yardımı ile ekonomik büyüme arasındaki ilişki, 1986-2018 yılları arasındaki dönemde Afganistan için zaman serisi yöntemi kullanılarak incelenmiştir. Bu amaçla, ilk olarak kullanılan serilerin durağanlaştırılması için ADF ve Phillips-Perron (PP) birim kök testleri yapılmıştır. Daha sonra gecikme uzunluğunu belirlenmesinin ardından bu iki değişkenin uzun dönemde birlikte hareket edip etmediğini sınamak için Johansen eşbütünleşme testi yapılmıştır. Yapılan test sonucunda, değişkenler arasında bir eşbütünleşme ilişkisi ispat edilmiştir. Ayrıca bu iki değişken arasındaki nedensellik ilişkisini araştırmak için hata düzeltme modeline dayalı Granger nedensellik testi yapılmıştır. Sonuç olarak, alınmış resmi kalkınma yardımlardan ekonomik büyümeye tek yönlü nedensellik ilişkinin varlığı tespit edilmiştir. Son olarak yapılan varyans ayrıştırma sonuçları da Granger nedensellik testinin sonucunu desteklemektedir.

JEL Classification : C51 , C32 , F35 , O4

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APA

Farahmand, M.A. (2021). The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan. Journal of Economic Policy Researches, 8(2), 141-154. https://doi.org/10.26650/JEPR885246


AMA

Farahmand M A. The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan. Journal of Economic Policy Researches. 2021;8(2):141-154. https://doi.org/10.26650/JEPR885246


ABNT

Farahmand, M.A. The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan. Journal of Economic Policy Researches, [Publisher Location], v. 8, n. 2, p. 141-154, 2021.


Chicago: Author-Date Style

Farahmand, Muhammad Akbar,. 2021. “The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan.” Journal of Economic Policy Researches 8, no. 2: 141-154. https://doi.org/10.26650/JEPR885246


Chicago: Humanities Style

Farahmand, Muhammad Akbar,. The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan.” Journal of Economic Policy Researches 8, no. 2 (Sep. 2021): 141-154. https://doi.org/10.26650/JEPR885246


Harvard: Australian Style

Farahmand, MA 2021, 'The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan', Journal of Economic Policy Researches, vol. 8, no. 2, pp. 141-154, viewed 25 Sep. 2021, https://doi.org/10.26650/JEPR885246


Harvard: Author-Date Style

Farahmand, M.A. (2021) ‘The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan’, Journal of Economic Policy Researches, 8(2), pp. 141-154. https://doi.org/10.26650/JEPR885246 (25 Sep. 2021).


MLA

Farahmand, Muhammad Akbar,. The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan.” Journal of Economic Policy Researches, vol. 8, no. 2, 2021, pp. 141-154. [Database Container], https://doi.org/10.26650/JEPR885246


Vancouver

Farahmand MA. The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan. Journal of Economic Policy Researches [Internet]. 25 Sep. 2021 [cited 25 Sep. 2021];8(2):141-154. Available from: https://doi.org/10.26650/JEPR885246 doi: 10.26650/JEPR885246


ISNAD

Farahmand, MuhammadAkbar. The Relationship Between Economic Growth and Foreign Aid: The Case of Afghanistan”. Journal of Economic Policy Researches 8/2 (Sep. 2021): 141-154. https://doi.org/10.26650/JEPR885246



TIMELINE


Submitted23.02.2021
Accepted06.04.2021

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