Abstract
Recently, the World Bank and IMF have been more interested in understanding whether foreign aid inflows from multilateral or bilateral donors have catalyzing effect on the crowd out effect to FDI. From this fact, the paper investigates the causal relationship between foreign aid, both bilateral and multilateral aid with FDI inflows to EAC members. Using time analysis techniques of VECM and Granger causality, the results are mixed. On one hand, foreign aid (bilateral and multilateral) causes FDI in two countries. On the other hand, we found no relationship between foreign aid and FDI in other two countries. The results calls for appropriate policy implementations.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Economics & Management Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
