Statistical Research Question: Does international aid cause more problems than it solves?

Authors Avatar

Research Assignment

Research Question: Does international aid cause more problems than it solves?

Hypothesis: The countries that receive international aid have seen an increase in their GDP over the last 20 years

International aid is described as ‘a voluntary transfer of  from one  to another, given at least partly with the objective of benefiting the recipient country’ Aid divides it self into Official aid and Voluntary aid, Official aid is a paid aid, by donor countries, which is given to the government of the recipient country so that they can distribute it. So the Official aid has Multilateral and Bilateral aid, The Multilateral aid, id when richer countries give money international organizations but this is made by the indirectly part, so the money is given to the World Bank or organizations like that.  While the Bilateral aid, is like I said before for the official aid, government to government, so it is more directly than the other type of aid. Voluntary aid is when it is given by independent organizations; these organizations raise the money and donate it to the private organizations.

Some countries need aid, either because natural hazards, or wars also because people are poor and they need the money. So there are lots of countries that are in debt, but maybe the country will start taking the money and become dependant of it, like the people might need the money and if it do not have the money, then the people will die. An example is Africa; ‘South Africa has a percentage of 47.67%’ of the population living with less than a dollar per day.

The countries in which I am going to focus are Rwanda and Mozambique; these two countries are located in Africa, these are countries that are actually receiving aid from different countries. In order to prove this hypothesis, we are going to talk about GDP; it means that, Gross Domestic Product. ‘It is a measure of a country’s overall economic output’. So this is why we are going to calculate the GDP versus the amount of aid that these countries received over the last 20 years, therefore, we can see if there is any correlation and prove or deny the hypothesis.

Join now!

So the spearman’s Rank will help us to do a correlation test, to see if the results are correlated or not. A spearman’s Rank is a ‘non- parametric measure of statistical dependence between two variables’. With this table, we can see the relationship between two variables, in this case the amount of aid received against the GDP. So in this case as we can see in APENDIX A and APENDIX B the results do not have correlation. Because a spearman’s Rank that has correlation has to be of 1 or -1.

Spearman’s Rank test for correlation

...

This is a preview of the whole essay