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Foreign Aid and Urbanization in Developing Countries

Author

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  • Kevin Sylwester

    (Department of Economics, Southern Illinois University¡XCarbondale, U.S.A.)

Abstract

This paper examines whether developing countries receiving more foreign aid also have higher rates of urbanization. After presenting a simple theoretical model, empirical work is conducted on a cross-section of countries during the 1990s. The paper finds that foreign aid is positively associated with subsequent urbanization even after controlling for income levels, population, and regional characteristics. If this association is given a causal interpretation, the results indicate that foreign aid enlarges urban areas.

Suggested Citation

  • Kevin Sylwester, 2008. "Foreign Aid and Urbanization in Developing Countries," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 153-166, August.
    • Handle: RePEc:ijb:journl:v:7:y:2008:i:2:p:153-166
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    References listed on IDEAS

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    Cited by:

    1. Sandrine Kablan, 2013. "Foreign Aid, Green Cities and Buildings," WIDER Working Paper Series wp-2013-048, World Institute for Development Economic Research (UNU-WIDER).
    2. Ahmad, Khalil & Ali, Amjad & Irfan Chani, Muhammad, 2014. "Does sector specific foreign aid matter for fertility? An empirical analysis form Pakistan," MPRA Paper 72851, University Library of Munich, Germany.
    3. Kablan, Sandrine, 2013. "Foreign Aid, Green Cities and Buildings," WIDER Working Paper Series 048, World Institute for Development Economic Research (UNU-WIDER).
    4. Ahmad, Khalil & Ali , Amjad & Chani, Muhammd Irfan, 2014. "Does Foreign Aid to Social Sector Matter for Fertility Reduction? An Empirical Analysis for Pakistan," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(04), pages 65-76, December.
    5. Syed Ali Abbas & Eliyathamby A. Selvanathan & Saroja Selvanathan, 2023. "The foreign aid and remittance nexus: Evidence from South Asia," The World Economy, Wiley Blackwell, vol. 46(7), pages 2032-2053, July.
    6. Wen-Lin Wu, 2017. "Institutional Quality and Air Pollution: International Evidence," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 16(1), pages 49-74, June.
    7. Abbas, Syed Ali & Selvanathan, Eliyathamby A. & Selvanathan, Saroja & Bandaralage, Jayatilleke S., 2021. "Are remittances and foreign aid interlinked? Evidence from least developed and developing countries," Economic Modelling, Elsevier, vol. 94(C), pages 265-275.

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    More about this item

    Keywords

    foreign aid; urbanization;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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