Foreign Economic Assistance and Its impact on Macro Economic Variables: An Indian Experience

This paper investigates the relationship between foreign Economic Assistance and Macroeconomic variable, macro economic variables are Gross Domestic Capital formation and gross domestic saving in India for the period 1990–2010. The study employed regression analysis model specified on the basic of hypothesized functional relationship between foreign Assistance as the explanatory variables, while gross domestic saving and Capital Formation constituted the explained variable. The model for the study was estimated using the ordinary least square (OLS) technique. Findings of research reveal that external assistance negatively affected the Gross domestic capital formation and Gross Domestic saving in India during 1990–91 to 2010–11.