Article Details

Impact of Aid Volatility on Economic Growth of India | Original Article

Tapan Kumar Nayak*, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research

ABSTRACT:

Although the controversy about the efficacy of international assistance continues unresolved, new research has concentrated on the potential reasons of ineffectiveness. One of the causes for aid ineffectiveness is the inconsistency of aid inflows, which is listed among other things. India has historically been a significant beneficiary of assistance, but economically, it also lags behind growth. We investigated the importance volatility of assist in understanding economic growth in India over The 1972-2015 era. We examine the position of current macroeconomic conditions in help effectiveness by creating a macroeconomic policy concept map. We used the Generalized Method of Moments (GMM) to address the endogenous nature of foreign relief calculation. After correcting for conventional economic growth determinants, our findings indicate that In the event of India, both international assistance and its uncertainty are negatively linked to economic growth. However, we have discovered this is a good policy climate increases the efficacy of international assistance.