Impact of Foreign Aid on Economic Development in Jordan (1990-2005)

Abstract

The analysis of the impact of foreign aid on economic development, suggest that poor countries have to relay on the foreign aid as a resource to fill the deficit. There are many form of foreign resources like Foreign Direct Investment (FDI), External Loans and Credit, Technical Assistance, Project and non Project Aid and many other forms. But most of under developed countries where Jordan one of them don't have the investment friendly situation. So in one way or the other have to relay on foreign aid and debt rather than other form of financial foreign resources. This study analyses the trend and impact of foreign aid on the economic development of Jordan during the period 1990-2005 using for this purpose different statistical techniques. From the analysis of the related data of Jordan it is clear that the foreign capital flow has a direct impact on the economic development of Jordan.