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Is aid the capital component making countries efficient?

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Author Info
Veiderpass, Ann () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Andersson, Per-Åke () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Abstract

Cross country regressions on aid effectiveness have failed to provide substantial evidence on the effects of foreign aid. This study focuses on country performance in a production theory context. By means of the non-parametric DEA method, we study 60 individual low and middle income countries between 1995 and 2000. Is there a systematic correlation between resource intensity and country efficiency? We find indications of a positive relation between capital intensity and country efficiency. We then investigate whether aid is the conclusive part of capital providing this correlation, but when linking country efficiency development to aid, there is no clear pattern to be found.

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File URL: http://hdl.handle.net/2077/18966
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 333.

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Length: 30 pages
Date of creation: 12 Jan 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0333

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Aid; efficiency; country comparison; production approach;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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This page was last updated on 2009-12-4.

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