IJSSER

Title: THE ASSESSMENT OF THE NEXUS BETWEEN OFFICIAL DEVELOPMENT ASSISTANCE AND GDP: AN EMPIRICAL STUDY ON BANGLADESH
Authors: S.M.Nasir Uddin , Afif Bin Mustakim , Md.Deloar Hossain , Anika Binte Shafiq
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S.M.Nasir Uddin1 , Afif Bin Mustakim2 , Md.Deloar Hossain3 , Anika Binte Shafiq4 1. Lecturer, Department of Economics, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj-8100, Bangladesh. 2. Lecturer, Department of Business Administration, Bangladesh Army University of Science and Technology,Saidpur-5310, Nilphamari, Bangladesh. 3. M.Sc., Department of Economics, Jahangirnagar University, Savar, Dhaka-1342, Bangladesh. 4. M.Sc., Department of Economics, Jahangirnagar University, Savar, Dhaka-1342, Bangladesh.
MLA 8 Uddin, S.M.Nasir, et al. "THE ASSESSMENT OF THE NEXUS BETWEEN OFFICIAL DEVELOPMENT ASSISTANCE AND GDP: AN EMPIRICAL STUDY ON BANGLADESH." Int. j. of Social Science and Economic Research, vol. 5, no. 10, Dec. 2020, pp. 2985-3010, doi:10.46609/IJSSER.2020.v05i10.013. Accessed Oct. 2020. APA 6 Uddin, S., Mustakim, A., Hossain, M., & Shafiq, A. (2020, December). THE ASSESSMENT OF THE NEXUS BETWEEN OFFICIAL DEVELOPMENT ASSISTANCE AND GDP: AN EMPIRICAL STUDY ON BANGLADESH. Int. j. of Social Science and Economic Research, 5(10), 2985-3010. doi:10.46609/IJSSER.2020.v05i10.013 Chicago Uddin, S.M.Nasir, Afif Bin Mustakim, Md.Deloar Hossain, and Anika Binte Shafiq. "THE ASSESSMENT OF THE NEXUS BETWEEN OFFICIAL DEVELOPMENT ASSISTANCE AND GDP: AN EMPIRICAL STUDY ON BANGLADESH." Int. j. of Social Science and Economic Research 5, no. 10 (December 2020), 2985-3010. Accessed October, 2020. doi:10.46609/IJSSER.2020.v05i10.013.
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Abstract: The paper provides the assessment of the nexus between official development assistance (ODA) and gross domestic product (GDP) in Bangladesh. The official development assistance is termed as foreign aid supplied by the advanced countries to developing and less developed countries for the upgradation of their livelihood and not for the progress of military purposes. GDP depicts a quick scenario of a country by assessing the size of the economy over a period of time. Time series yearly data from 1971 to 2018 has been used for the analysis. After ADF analysis for the stationarity of data ARDL bound test has been used for determining the short-run along with long-run association between the variables. The evidence has been found that in the long-run ODA and GDP are cointegrated. The ECM model exposes the equilibrium that converges to steady state at 65% annually by analyzing ECM. The Granger Causality test in the short run OLS model indicates a unidirectional causality between ODA and GDP that means ODA causes GDP. Again in the long run OLS model there also have unidirectional causality between GDP and ODA and it indicates that GDP cause ODA and identified as GDP and ODA are not separate variables. A set of robustness test affirm the accuracy of the analysis. Lot of study is needed in this aspect to get more empirical information about the effectiveness of the official development assistance and economic overview of this country.

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