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Effects of Foreign Aid in SADC Region: A Case for Malawi
Most underdeveloped countries continue to receive Official Development Aid, and Malawi is not an exception. This research paper examined the effect of Official Development Aid on the Gross Domestic Product and Human Development Index in Malawi, using annual time series data from 1990 to 2018. In add...
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| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2022
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| _version_ | 1867613295131754496 |
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| access_status_str | Open Access |
| author | Chalamba, Leah |
| author2 | Alhassan, Abdul Latif |
| author_browse | Alhassan, Abdul Latif Chalamba, Leah |
| author_facet | Alhassan, Abdul Latif Chalamba, Leah |
| author_sort | Chalamba, Leah |
| collection | Thesis |
| description | Most underdeveloped countries continue to receive Official Development Aid, and Malawi is not an exception. This research paper examined the effect of Official Development Aid on the Gross Domestic Product and Human Development Index in Malawi, using annual time series data from 1990 to 2018. In addition, the relationship of Gross Domestic Product, Human Development Index and Official Development Aid was analysed using cointegration, correlation and granger causality techniques. The results of cointegration indicated a short term relationship among the variables, hence the Vector Autoregressive (VAR) Model was used together with Ordinary Least Squares (OLS) to study the effect of Official Development Aid to Human Development Index and the effect of Official Development Aid to Gross Domestic Product. In the first VAR Model Equation, Gross Domestic Product was significantly positively influenced by Trade Openness and lagged value of Gross Domestic Product. In the second VAR Model Equation, Official Development Aid and lagged value of Human Development Index were found to positively influence Human Development Index from 1990 to 2018. In addition, Official Development Aid showed significant influence to GDP. In summary, Official Development Aid showed significant positive influence to Human Development Index, while indicating varied results regarding influence to Gross Domestic Product. Findings suggest that policy makers in Malawi should gradually stop relying on donors, explore targeted foreign aid and think of other innovative ways like changing policies on trade openness and human development to boost the country's GDP, among others. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/35692 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:51.607Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/35692 Effects of Foreign Aid in SADC Region: A Case for Malawi Chalamba, Leah Alhassan, Abdul Latif Development Finance Most underdeveloped countries continue to receive Official Development Aid, and Malawi is not an exception. This research paper examined the effect of Official Development Aid on the Gross Domestic Product and Human Development Index in Malawi, using annual time series data from 1990 to 2018. In addition, the relationship of Gross Domestic Product, Human Development Index and Official Development Aid was analysed using cointegration, correlation and granger causality techniques. The results of cointegration indicated a short term relationship among the variables, hence the Vector Autoregressive (VAR) Model was used together with Ordinary Least Squares (OLS) to study the effect of Official Development Aid to Human Development Index and the effect of Official Development Aid to Gross Domestic Product. In the first VAR Model Equation, Gross Domestic Product was significantly positively influenced by Trade Openness and lagged value of Gross Domestic Product. In the second VAR Model Equation, Official Development Aid and lagged value of Human Development Index were found to positively influence Human Development Index from 1990 to 2018. In addition, Official Development Aid showed significant influence to GDP. In summary, Official Development Aid showed significant positive influence to Human Development Index, while indicating varied results regarding influence to Gross Domestic Product. Findings suggest that policy makers in Malawi should gradually stop relying on donors, explore targeted foreign aid and think of other innovative ways like changing policies on trade openness and human development to boost the country's GDP, among others. 2022-02-11T10:23:05Z 2022-02-11T10:23:05Z 2021 2022-02-09T12:37:33Z Master Thesis Masters MCom http://hdl.handle.net/11427/35692 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Development Finance Chalamba, Leah Effects of Foreign Aid in SADC Region: A Case for Malawi |
| thesis_degree_str | Master's |
| title | Effects of Foreign Aid in SADC Region: A Case for Malawi |
| title_full | Effects of Foreign Aid in SADC Region: A Case for Malawi |
| title_fullStr | Effects of Foreign Aid in SADC Region: A Case for Malawi |
| title_full_unstemmed | Effects of Foreign Aid in SADC Region: A Case for Malawi |
| title_short | Effects of Foreign Aid in SADC Region: A Case for Malawi |
| title_sort | effects of foreign aid in sadc region a case for malawi |
| topic | Development Finance |
| url | http://hdl.handle.net/11427/35692 |
| work_keys_str_mv | AT chalambaleah effectsofforeignaidinsadcregionacaseformalawi |