This study has examined sectoral analysis of the impact of foreign aid on aggregate and sectoral economic growth in Ethiopia over the period 1981 to 2012 using Multivariate Vector Auto Regression analysis. All the necessary time series tests such as stationary test, co-integration test, weak exiguity test, vector error correction, and causality test in vector error correction model and the like are conducted. The empirical result from the growth equation shows that aid has a significant positive impact on educational sector GDP growth in the long run. On the other hand, foreign aid has positive but insignificant impact on real GDP growth, agriculture GDP growth, and health sector GDP growth of Ethiopia for the period under consideration. Foreign aid is effective in enhancing economic growth at aggregate level of Ethiopia in general and education sector in particular. The result of the study reveals that there is a bi-directional causal relationship between educational GDP and educational foreign aid in Ethiopia. There is also a unidirectional causality between agricultural aid and agricultural GDP growth. However, the health sector does not show any causality with their respective sector aid. This implies that aid allocated for certain sectors is ineffective in achieving its objectives of economic growth. Therefore, aid recipient country like Ethiopia has to work how to enhance the domestic revenue raising capacity of the country which is at the heart of the mechanism to meet the capital required for the economy in times of short falls and ineffectiveness of external resources.

Master's Thesis from the year 2014 in the subject Economics - Macro-economics, general, grade: First grade, Wollega University (College of business and Economics), course: Development Economics, language: English, abstract: This study has examined sectoral analysis of the impact of foreign aid on aggregate and sectoral economic growth in Ethiopia over the period 1981 to 2012 using multivariate Vector auto regression analysis. All the necessary time series tests such as stationary test, co-integration test, weak exiguity test, vector error correction, and causality test in vector error correction model and the like are conducted. The empirical result from the growth equation shows that aid has a significant positive impact on educational sector GDP in the long run. On the other hand, foreign aid has positive but insignificant impact on real GDP, agriculture GDP, and health sector GDP of Ethiopia. Foreign aid is effective in enhancing growth at aggregate level of the economy in general and education sector of the economy of Ethiopia in particular. The test result of the study result reveals that there is a bi-directional causal relationship between educational GDP and educational foreign aid in Ethiopia. However, the agricultural and health sector does not show any bi-directional causality with their respective sector aid. This implies that all aid allocated for sectors is ineffective all in all in achieving its objectives of economic development. Therefore, aid recipient country like Ethiopia has to work how to enhance the domestic revenue raising capacity of the country which is at the heart of the mechanism to meet the capital required for the economy in times of short falls and ineffectiveness of external resources.

Master's Thesis from the year 2014 in the subject Economics - Other, grade: Frst Grade, Wollega University (Business and Economics), course: Development Economics, language: English, abstract: This study has examined sectoral analysis of the impact of foreign aid on aggregate and sectoral economic growth in Ethiopia over the period 1981 to 2012 using multivariate Vector auto regression analysis. All the necessary time series tests such as stationary test, co-integration test, weak exiguity test, vector error correction, and causality test in vector error correction model and the like are conducted. The empirical result from the growth equation shows that aid has a significant positive impact on educational sector GDP in the long run. On the other hand, foreign aid has positive but insignificant impact on real GDP, agriculture GDP, and health sector GDP of Ethiopia. Foreign aid is effective in enhancing growth at aggregate level of the economy in general and education sector of the economy of Ethiopia in particular. The test result of the study result reveals that there is a bi-directional causal relationship between educational GDP and educational foreign aid in Ethiopia. However, the agricultural and health sector does not show any bi-directional causality with their respective sector aid. This implies that all aid allocated for sectors is ineffective all in all in achieving its objectives of economic development. Therefore, aid recipient country like Ethiopia has to work how to enhance the domestic revenue raising capacity of the country which is at the heart of the mechanism to meet the capital required for the economy in times of short falls and ineffectiveness of external resources.

'Should be on the shelf of any academic, student, NGO activist or politician with an interest in aid issues. It should also be required reading for donor agency officials' Development and Change 'As accessible as it is comprehensive has established itself as a reliable 'watchdog' for anyone interested in this important aspect of international relations' ORBIT Despite commitments to eradicate poverty, 21 of the world's richest nations have slashed their aid to the world's poorest countries to just 0.3% of GNP, its lowest level for more than 20 years. In real terms, aid in 1994 was below the 1990 level, and with several donors planning further cuts it is likely that the aid level will continue to fall. Now in its fourth annual edition, The Reality of Aid critically examines the reality behind the rhetoric of development assistance, and the discrepancy between the targets that the 21 member countries of the OECD Development Assistance Committee are publically committed to and the aid that is actually disbursed. Part 1 of this year's edition includes analyses of; * the impact of the Copenhagen World Summit for Social Development and '20/20' compact; * developing countries' debt and their Northern creditors, including banks and international financial institutions; * efforts to eradicate poverty, a stated aim of development assistance; * the human and economic cost of the estimated 140 million unexploded landmines currently planted around the world; and * the impact of conflict and humanitarian need on development cooperation. In a new section, Part 2 presents perspectives from the South, with contributors from India, Cambodia, Peru, Zimbabwe, Poland and Fiji. Part 3 consists of detailed, country-by-country profiles of the aid performance of the OECD donors; and Part 4 reviews aid spending by Northern governments and NGOs, with 'at a glance' tables and charts which compare donors' performance on issues such as aid to basic health and education, the priority given to poverty reduction, the political management of aid and public attitudes to aid in developed countries. Throughout, information is summarized in easily interpreted figures and graphs. First produced in 1993, The Reality of Aid has established itself as a unique source of independent evaluation and comment on aid policies and developments. It is indispensable for all involved in development aid, whether in the official or voluntary sectors. Originally published in 1996