Official Development Assistance and Foreign Trade Relation: The Chad Example

Authors : Hilal Paksoy
Pages : 311-325
Doi:10.29249/selcuksbmyd.1624768
View : 44 | Download : 21
Publication Date : 2025-04-30
Article Type : Research Paper
Abstract :Official Development Assistance (ODA) provided by the OECD Development Assistance Committee (DAC) means financial support given to underdeveloped and developing countries within the framework of certain criteria. In this context, it appears as one of the tools used to finance economic development, especially in developing countries. The study aims to examine the impact of official development assistance on foreign trade in Chad, one of the developing countries. Using data on exports (EXPORT), imports (IMPORT), gross domestic product (GDP) and official development assistance (ODA) from the World Bank and OECD database for the years 1960-2022, we examine the contribution of these aid to Chad\\\'s foreign trade and economic sustainability. aimed to evaluate. In the analysis, Regression Analysis was performed with the Least Squares Method. Phillips-Perron and Augmented Dickey-Fuller unit root tests were applied to test the stationarity properties of time series. Long-term relationships between the series were examined with the Johansen Cointegration Test and Granger Causality Analysis was performed to determine the direction of the relationships between the variables. The findings show that there is a bidirectional relationship between GDP and ODA, and between ODA and exports. However, the effect of ODA on imports and GDP on exports is unidirectional. Additionally, a bidirectional relationship between GDP and imports has been observed. Research results show that development aid can positively strengthen Chad\\\'s economic growth and foreign trade performance. It fills an important gap in the literature as it provides important findings on how development aid and foreign trade strategies can be integrated for Chad\\\'s economic sustainability and growth. Limitations of the study include data limitations and the variability of foreign trade policies over time.
Keywords : Resmi Kalkınma Yardımları, Johansen Eşbütünleşme Testi, Dış Ticaret, Makroekonomik Yapı

ORIGINAL ARTICLE URL