The concept of foreign aid became a fundamental component of international affairs and an essential instrument to rebuild the world after the World War II. Many developing countries including Ghana depend on it in order to support their budget or finance economic projects and programmes in their countries. The study examines the impact of foreign aidinflow on economic growth for the Ghanaian economy for the period 1975 to 2010 by adopting the Burnside and Dollars model. We indicated that foreign aid has a positive but insignificant effect on economic growth of Ghana. The study concludes by examining and recommending important policy issues that must be given thorough attention in order to achieve significant impact of aid on Ghana's economic growth.
Economic growth, Foreign Aid, Foreign Direct Investment, Human Capital
