Causality Test between Foreign Aid and Economic Growth: The Case of Afghanistan

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Main Authors: Shaukat Rahman Ansari, Ika Nurul Qamari
Format: Recurso digital
Language:English, Old (ca. 450-1100)
Published: Zenodo 2025
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author Shaukat Rahman Ansari
Ika Nurul Qamari
author_facet Shaukat Rahman Ansari
Ika Nurul Qamari
contents <p>This study examines all available data to determine if ODA has a long-term beneficial impact on GDP, identify the <br>significant issues with ODA expenditure and aid dependency in Afghanistan, and improve economic growth prospects in <br>Afghanistan. Database for the period 2002-2021 is s considered for this study. The study uses time series analysis using the EViews <br>12 software. These tests were conducted using ADF and Phillips-Perron (PP), the Johansen cointegration test, and the Granger <br>causality test. Johansen's cointegration test revealed the presence of two cointegration relationships between GDP and ODA <br>variables. This suggests that GDP and ODA move together in the long run, indicating a mutual relationship or interdependence <br>between the two variables. Moreover, Granger causality test results suggest that neither ODA nor GDP Granger causes the other.</p>
format Recurso digital
id zenodo_https___doi_org_10_5281_zenodo_14731387
institution Zenodo
language ang
publishDate 2025
publisher Zenodo
record_format zenodo
spellingShingle Causality Test between Foreign Aid and Economic Growth: The Case of Afghanistan
Shaukat Rahman Ansari
Ika Nurul Qamari
Foreign Aid, Foreign assistance, Economic Growth, Afghanistan
<p>This study examines all available data to determine if ODA has a long-term beneficial impact on GDP, identify the <br>significant issues with ODA expenditure and aid dependency in Afghanistan, and improve economic growth prospects in <br>Afghanistan. Database for the period 2002-2021 is s considered for this study. The study uses time series analysis using the EViews <br>12 software. These tests were conducted using ADF and Phillips-Perron (PP), the Johansen cointegration test, and the Granger <br>causality test. Johansen's cointegration test revealed the presence of two cointegration relationships between GDP and ODA <br>variables. This suggests that GDP and ODA move together in the long run, indicating a mutual relationship or interdependence <br>between the two variables. Moreover, Granger causality test results suggest that neither ODA nor GDP Granger causes the other.</p>
title Causality Test between Foreign Aid and Economic Growth: The Case of Afghanistan
topic Foreign Aid, Foreign assistance, Economic Growth, Afghanistan
url https://doi.org/10.5281/zenodo.14731387