This study sought to carry out an empirical analysis of the impact of foreign aid on capital generation in Nigeria ranging from 1980-2013. Linear regression was adopted in the method with the application of Ordinary Least Squares (OLS) technique. The results derived showed that foreign aid...

Research on the macroeconomic effects of aid has expanded rapidly in recent years. In this paper, we provide a survey of this literature. We start by reviewing some theoretical models that suggest a positive impact of aid on investment and growth. We then discuss the empirical evidence, giving...