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Abstract

The focus of this study was to test if International development assistance bring any change in the Nigerian economy. The data was based on the foreign aid inflow for the period of 1986 to 2016. Stationarity of data is established using the unit root test. For testing the direction of causality, short run and long run dynamic relationship between independent and dependent variables, Granger Causality Procedure, Johansen Co-Integration and Error Correction Model is utilized. Finding indicate that International development assistance bring improvement in the Nigerian economy. Furthermore, long run equilibrium relationship between official development assistance and economic growth is established in this study.