Foreign Aid & Economic Growth

Proposal on

“Foreign Aid and Economic Growth”

Introduction

In the world of capitalism, it is very essential to possess sustainable economic backup. For an economy; the management of economic affairs lead to the overall growth and development of a country. A country is an individual state, which is an economic management. There are several variables through which a country manages economic discrepancies, as well as, escalate the affirmative variables that add economic stability to the country.

Foreign aid is a variable that lifts the economic mechanism and leads the country to a prosperous state. Foreign aid is defined as “the amount of direct investment that encompasses of forwarding funds in to a business in to another country”. It is usually conducted through foreign investments into stocks and bonds. The role of foreign investment is to escalate the amount of funds in a country that encompasses of accelerating a business activity as well as, lead the country into a safer shore of economic management.

The purpose of the research is to look into the context of foreign aid, as well as, the tactics of managing foreign aid in such a manner that takes to economic growth. It reads the effect of foreign aid in economic development and looks into insight of the cause-effect relationship between the foreign aid in a country and economic growth (Riddle, 2007, 56-98).

Background of the study

It is a factual paradigm of economic management that the premises of foreign aid lead to growth and development of an economy. As a result, foreign aid is an escalation of funds that prevail in a given economy, as well as, they are available to foster the business activity carried on in the economy in particular. The study assesses the cause and effect in a given economy.

Significance of the study

In a given economic context, the study is very significant since it investigates foreign aid impacts upon the growth of an economy. The study leads to an assessment of fostering the economic growth in a country that leads to a better position of economic growth. The purpose of economic growth and development in an economy is to enhance the living quality in a country. Countries with supple economic position are quite capable of rendering prosperity and sustainability to the people of the country. The study provides a way out for economies to develop a stronger context of economic livelihood and socio-economic context in a country.

Research question

The proposed study focuses upon following research questions;

What is the role of foreign aid in an economy?

What is the context of economic growth and development in a given economy?

What is the impact of foreign aid upon economic growth of a country

Research aims and objectives

The aims and objectives of the study are further discussed as under;

To assess the context of foreign aid

To study and analyze the relationship between foreign aid and economic growth

To investigate the effect on significant economic variables and look into their detail

To account the effect ...