How Does Foreign Aid Reflect The Economic Growth of Malaysia and Indonesia? Ardl Analysis From 1990 to 2019
Previous studies prove that foreign aid's effect on the recipient country's economic growth can be translated into three conditions: significant, insignificant and mixed. Therefore, the researcher wants to study the effect of Australian foreign aid on the economic growth of Malaysia and In...
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| Main Author: | |
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| Format: | Thesis |
| Language: | eng eng |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/11110/1/depositpermission.pdf https://etd.uum.edu.my/11110/2/s825442_01.pdf |
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| Summary: | Previous studies prove that foreign aid's effect on the recipient country's economic growth can be translated into three conditions: significant, insignificant and mixed. Therefore, the researcher wants to study the effect of Australian foreign aid on the economic growth of Malaysia and Indonesia. Therefore, it is also translated together with other independent variables namely the total labour force and gross capital formation to ensure that the impact of Australian foreign aid on the economic growth of Malaysia and Indonesia can be explained in detail and clearly. Data for 31 years is used from 1990 to 2020 to study the effect of foreign aid from Australia along with other independent variables on economic growth for the countries of Malaysia and Indonesia. Statistical and econometric software namely EViews version 11 was chosen to analyse the data obtained from the World Bank and the Autoregressive Distributed Lag (ARDL) model was used to explain the effect of foreign aid along with other independent variables on the economic growth of Malaysia and Indonesia. For the case of foreign aid from Australia to Malaysia, the results of the analysis found that the effect of Australian foreign aid and gross capital formation on Malaysia's economic growth was significant, nor did the total labour force show the opposite effect on economic growth. As for the case of Australia's foreign aid to Indonesia, the results of the analysis found that all variables have a significant effect on Indonesia's economic growth. This study can further contribute to the latest studies, both practically and theoretically. Future studies can test this model in
different countries or organisations to increase the generalizability of the findings. |
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