Foreign aid and Co2 Emission impact on Economic Growth: Evidence from Ethiopia

Foreign aid entails provision of funds or resources or technical assistance by one country to another. The purpose is normally informed by the growth of the recipient nation, mitigation of disasters and assistance with social issues. It may be applied in a multifunctional manner: donations, subsidies, gifts and in-kind for purchases made through grants, loans or donations of goods and services. Generally, it is intended to help countries in distress owing to poverty, calamities, destructions, devastations or war. Therefore, the aim of the current study is to analyses the effect of foreign aid, carbon dioxide emissions and other related economic indicators on Ethiopia. Both annual and other period data were obtained from the WDI, IMF, Ethiopian Ministry of Finance and Economic Development, MoPADBE, DBE, NBE, and MoF. Foreign aid, CO2 emissions, and macroeconomic variables were regressed on economic growth in this study The research data was analyzed using descriptive statistics and E-View version 9 software. The human capital variable has a positive coefficient positive effect. The government has to decrease carbon dioxide emission and donate the development aid to every field according to the provision of law.