Aid, Growth and Poverty Alleviation in Ethiopia

TL;DRAbstract

Ethiopia is one of the countries receiving large proportions of aid, especially since the introduction of the policy changes (1992) there is a substantial amount of aid flows. This lead to raise government expenditure on various productive activities, contribute either directly to the improvement of economic growth of the country (accelerator) and/or to the development of services (multiplier). In both ways I deem that the undergoing efforts made by the government using aid as an additional resource are contributing to the enhancement of the economic development of the country. But I still argue that the achievements made are not up to the expectation of the government and the donor. Therefore this study is trying to answer the question: What role has aid played in the economic growth and poverty reduction process in Ethiopia since the introduction of policy change (1992/93)? Main hypothesis of this paper falls on the idea of: for aid to be effective, change in policy or development st

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