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SUMMARY
This study examined the impact of foreign aid on economic growth in Nigeria. As one indicator of economic growth, it was used to represent economic growth. Based on Solow's theory of development, a model is developed and estimated. However, before the ECM estimation, basic preliminary tests such as correlation analysis, unit root test and covariance tests were conducted. From the results of ECM estimation, it is confirmed that foreign aid has a positive and significant contribution to economic growth/development. Other variables included in the model, such as capital stock and high school enrollment rate, also had a positive effect on economic growth/development, although not statistically significant in relation to capital stock. Inflation has also had a negative and significant impact on economic growth/development. The error correction term has a negative sign and a statistically significant correction rate of 45 percent. The causal relationship of the variables in the model was determined using the Granger's causality test, and the structural stability of the model was determined and confirmed using the cumulative sum of residuals (CUSUM). A histogram normality test verifies residual normality. The Breusch-Godfrey (B-G) serial correlation shows that there is no problem, the Breusch-Pagan-Godfrey used for heteroscedasticity shows that there is no heteroscedasticity issue in the model
