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August 17, 2025

Impact of Foreign Aid on Economic Growth in South Asian Countries

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Analysis shows foreign aid influences GDP per capita in South Asian countries, indicating effective use is crucial.

Foreign aid positively impacts economic growth in South Asia, enhancing GDP per capita.
The study reveals that gross capital formation has a significant positive effect on GDP per capita.
This assessment uses panel data from South Asian countries, focusing on a 34-year timeframe from 1990 to 2024.
Governments should strategically utilize foreign aid for developmental projects to foster long-term growth.

Jalil et al. (2025) studied this question.

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