International development assistance as a determinant of economic growth in Nigeria

Abstract

This study examines whether international development assistance contributes to economic growth in Nigeria. The analysis is based on foreign aid inflows from 1986 to 2016. To ensure data reliability, a unit root test is conducted to check for stationarity. The study employs the Granger Causality Procedure, Johansen Co-Integration, and the Error Correction Model to assess both short-term and long-term dynamic relationships between the independent and dependent variables. The findings suggest that international development assistance positively impacts Nigeria’s economy. Additionally, the study confirms a long-term equilibrium relationship between official development assistance and economic growth .

Keywords: International Development Assistance, Economic Growth, Nigerian Economy, Official Development Assistance, Investment.