Abstract
<p>This paper studies the impact of foreign aid on Vietnam economic growth. By analyzing Vietnam statistical data, the research results show a negative relationship between foreign aid and economic growth of Vietnam. The main reason may be due to wrong and ineffective usage of this aids, and also corruption in the country. On these basis, we propose some recommendations for improving the performance of aid usage by strictly managing and reasonably allocating aid fund. Accordingly, Vietnam Government should improve the State’s management capacity by implementing decentralized administration in a clear and transparent manner; by simplifying procedures; by improving aid-funded project appraisal; and by ensuring an independence of foreign aids.</p>
Highlights
Researchers discuss continuously the two opposite opinions about impacts of foreign aid on economic growth of recipient country. Bauer (1972) stated that foreign aid is a process in which the poor in rich countries aid the rich in poor countries; and it does not have any impact on economic growth
This paper studies the impact of foreign aid on Vietnam economic growth
We focus on the subject of “Foreign aid and economic growth in Vietnam: empirical study and policy implications”
Summary
Researchers discuss continuously the two opposite opinions about impacts of foreign aid on economic growth of recipient country. Bauer (1972) stated that foreign aid is a process in which the poor in rich countries aid the rich in poor countries; and it does not have any impact on economic growth. The opposite opinions oppose by saying that foreign aid is an important way to boost economic development for eliminating hunger and reducing poverty in less developed countries over the world. Vietnam receives foreign aids from other countries over the world in various forms for its economic development. Vietnam has to sacrifice several economic benefits for aid-giving countries; and serious corruptions are identified in development projects relating to foreign aids form Japan, China and Australia. In this context, we focus on the subject of “Foreign aid and economic growth in Vietnam: empirical study and policy implications”. The primary objectives consist in studying the impacts of foreign aid on economic growth in Vietnam, and in proposing relevant recommendations for using effectively foreign aid in favor of Vietnam economic growth in the context of globalization
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