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All Journal International Journal of Business Economics (IJBE)
Gomolemo Gashiten
University of Botswana Department of Management
Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

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Official Development Assistance; A Succor To Manufacturing That Enhance Economic Growth In SADC Gomolemo Gashiten
International Journal of Business Economics (IJBE) Vol 4, No 2 (2023): MARCH - AUGUST 2023
Publisher : Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30596/ijbe.v4i2.13378

Abstract

The aim of this study was to establish ODA as an aid to manufacturing that leads to economic growth using data from Southern Africa Development Community (SADC) countries. The study adopted manufacturing as a percentage of GDP as a mediator between ODA and economic growth. The United Nations report (2020) observed that close to half of the population in the region are living below the poverty datum line. This is why the researcher saw it fitting to conduct a research on how ODA can better result into economic growth. The theory that was utilized in the research is the Absorptive capacity model which helped in developing a theoretical framework that links manufacturing as a mediating variable between ODA and economic growth. Absorptive capacity formed a very important aspect in this research and it is measured by manufacturing. The Random Effects Model was also used in data analysis which revealed that ODA has positive impact on economic growth.
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