The effect of foreign aid on financial and economic growth in Middle East and Turkey

Relieving humanitarian needs and contributing to the recipient countries' financial and economic growth are foreign aids' main goals and objectives. This study assesses foreign aid's impact on financial and economic growth in the middle east (excluding high-income countries) and Turkey. Secondary sources of data were used in this study. The duration of the study covered 48 years from 1970 to 2017. The statistical method used to analyze the data was multiple regression analysis. A Pearson correlation pre-test was also conducted to detected and avoid any possible multicollinearity between the independent variables. Dependent variables used are financial growth measured by foreign direct investment net inflows (% of gross domestic product) and economic growth measured by the gross domestic product growth Annual percentage. The independent variables are foreign aid measured by net official aid received as a USD currency. Gross domestic saving (% of gross domestic product) is used as an independent control variable. The results of this study show that there is a positive and significant relationship between foreign aid and financial growth in both Turkey and the Middle East.