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Granger causality between international forign aid, adult mortality and GDP: evidance from panel analysis for 96 countries

Author

Listed:
  • Afridi , M. Asim

    (Aix-Marseille University, Marseille, France)

  • Amiri, Arshia

    (Collage of Economics, Shahid Chamran Ahwaz University, Iran)

Abstract

The study examines the relationships between adult mortality, per capita income and foreign aid. We have included 37 low-income (LIC), 39 lower middle-income (LMIC), 20 upper middle income (UMIC) for the period 1990-2008. Results demonstrate that the highest bilateral causal relation between GDP, aid and mortality is for aid and mortality. Although less effective for particular groups of countries (UMIC), foreign aid generally has a negative impact on mortality, as reported by tests taking into account directional causalities (70% of valid coefficients are negative). This result moderates the pessimist view about international development aid, at least in the domain of assistance for health.

Suggested Citation

  • Afridi , M. Asim & Amiri, Arshia, 2013. "Granger causality between international forign aid, adult mortality and GDP: evidance from panel analysis for 96 countries," European Economic Letters, European Economics Letters Group, vol. 2(1), pages 32-37.
    • Handle: RePEc:ris:eueclt:0011
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    More about this item

    Keywords

    Granger causality; Foreign aid; Health outcomes; GDP;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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