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Does Foreign Aid Affect The Environment In Developing Economies?

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  • B. Mak Arvin

    ()
    (Department of Economics, Trent University)

  • Parviz Dabir-Alai

    (Department of Economics, Richmond University)

  • Byron Lew

    (Department of Economics, Trent University)

Abstract

Preserving the environment is important from both national and international perspectives. Similarly, the provision of foreign assistance from richer to poorer nations is often seen as an imperative. However, there is a noticeable gap in research on how aid flows are linked to the environment in developing economies. Using the method of Granger causality, this paper explores the possible linkages. Results indicate that the external debt of a developing country bears upon the relationship in important ways. The second part of the paper entertains the possibility of spurious causality, tests for cointegration, and present additional results using an error-correction model.

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Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 31 (2006)
Issue (Month): 1 (June)
Pages: 63-87

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Handle: RePEc:jed:journl:v:31:y:2006:i:1:p:63-87

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Related research

Keywords: Developing Countries; Pollution; Foreign Aid;

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Cited by:
  1. B. Mak ARVIN & Zafar KAYANI & Marisa A. SCIGLIANO, 2009. "Environmental Aid and Economic Development in the Third World," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
  2. Bettina Kretschmer & Michael Hübler & Peter Nunnenkamp, 2010. "Does Foreign Aid Reduce Energy and Carbon Intensities in Developing Countries," Kiel Working Papers 1598, Kiel Institute for the World Economy.
  3. Huang, Yongfu & Quibria, M. G., 2013. "The global partnership for sustainable development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Li, Jun, 2013. "Foreign aid, urbanization and green cities," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Alain-Désiré Nimubona & Horatiu Rus, 2011. "Green Technology Transfers and Border Tax Adjustments," Working Papers 1102, University of Waterloo, Department of Economics, revised May 2011.

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