Understanding the Impact of China and U.S. Aid on the Economic Growth of Africa: Empirical Evidence from Nigeria

Abstract

On the question of whether foreign aid stimulates GDP growth, the profession offers inconclusive as well as frequent contradictory results. While waiting for a robust consensus, this paper analyzes the impact of China and the United States aid on Nigeria Economic growth. A descriptive fact of how big is China and the United States aid and how much of it goes to Africa is also address. Using the Ordinary Least Squares Method (OLS) and the Granger causality test method for foreign aid, we find out that China and the United States aid have mixed effects on the economic growth of Nigeria.

Keywords: Africa, Aid, China, Economic Growth, Nigeria, United States

JEL Classifications: F35, F43