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Is there a long-run relationship between ODA and GDP? The case of India

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  • P. J. Dawson
  • Richard Tiffin

Abstract

The existence of a long-run relationship between ODA and per capita GDP in India is examined, using annual data for 1961-92. A necessary condition for such a relationship is that the two series are integrated of the same order. Unit root tests indicate that ODA is I (0) while GDP is I (1), hence no long-run relationship exists. Thus, at the macroeconomic level, aid neither stimulates economic development nor detracts from it. A corollary is that aid is not responsive to changes in India's income.

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  • P. J. Dawson & Richard Tiffin, 1999. "Is there a long-run relationship between ODA and GDP? The case of India," Applied Economics Letters, Taylor & Francis Journals, vol. 6(5), pages 275-277.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:5:p:275-277
    DOI: 10.1080/135048599353212
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    Cited by:

    1. Themba G. Chirwa & Nicholas M. Odhiambo, 2019. "The nexus between key macroeconomic determinants and economic growth in Zambia: a dynamic multivariate Granger causality linkage," Empirical Economics, Springer, vol. 57(1), pages 301-327, July.

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