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Foreign aid and economic growth: New evidence from a panel data approach for five South Asian countries

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  • Asteriou, Dimitrios

Abstract

This paper investigates the long-run relationship between foreign aid and economic growth using a panel data set comprising of five South Asian economies. Using the recently developed panel unit root tests, mean group and pooled mean group estimation techniques on cross-country panel data, the paper finds support of the theoretical hypothesis of a positive relationship between aid and GDP growth.

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File URL: http://www.sciencedirect.com/science/article/B6V82-4SP3SK9-2/2/5dd92c4efd9c02ddd36f2de3212ac39d
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 31 (2009)
Issue (Month): 1 ()
Pages: 155-161

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Handle: RePEc:eee:jpolmo:v:31:y:2009:i:1:p:155-161

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Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: Foreign aid Economic growth Panel data econometrics;

References

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  1. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
  2. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
  3. Judith Giles, 1994. "Another look at the evidence on foreign aid led economic growth," Applied Economics Letters, Taylor and Francis Journals, vol. 1(11), pages 194-199.
  4. Vasudeva Murthy & Victor Ukpolo & John Mbaku, 1994. "Foreign aid and economic growth in Cameroon: evidence from cointegration tests," Applied Economics Letters, Taylor and Francis Journals, vol. 1(10), pages 161-163.
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Cited by:
  1. Nowak-Lehmann D., Felicitas & Martínez-Zarzoso, Inmaculada & Herzer, Dierk & Klasen, Stephan & Dreher, Axel, 2009. "The search for a long-run aid and growth relationship: Pitfalls and findings," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 23, Verein für Socialpolitik, Research Committee Development Economics.
  2. Anupam Das & Murshed Chowdhury, 2011. "Remittances and GDP Dynamics in 11 Developing Countries: Evidence from Panel Cointegration and PMG Techniques," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 3-23, December.
  3. Marta C. N. Simões, 2011. "Education Composition and Growth: A Pooled Mean Group Analysis of OECD Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 455-471, December.
  4. Muhammad Javid & Abdul Qayyum, 2011. "Foreign Aid and Growth Nexus in Pakistan: The Role of Macroeconomic Policies," PIDE-Working Papers 2011:72, Pakistan Institute of Development Economics.

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