Global financial crisis and foreign development assistance shocks in least developing countries
AbstractThis paper evaluates whether the exogenous component of the global financial crisis affects OECD-DAC EU donor countries ODA disbursements to the LDCs and how it impacts on LDCs economic prosperity. Using both static and dynamic panel techniques, we find that global financial crisis in OECD-EU donor countries are causes for the significant downside of ODA flows to the LDCs. Consequently it adversely affects through the various transmission channels (e.g. ODA disbursements, remittances, bilateral financial flows, export growth) to the LDCs economic growth. Our results also explore that due to countercyclical role of ODA flows from the donors’ largely affect to the LDCs economic development process negatively. The robustness checks using alternative estimation technique supports our original estimation results in every context.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40281.
Date of creation: 22 Mar 2012
Date of revision:
: Financial crisis; ODA; economic growth; OECD-EU donors; LDCs;
Other versions of this item:
- Debasish Kumar Das & Champa Bati Dutta, 2013. "Global Financial Crisis And Foreign Development Assistance Shocks In Least Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(2), pages 1-41, June.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- F35 - International Economics - - International Finance - - - Foreign Aid
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- F39 - International Economics - - International Finance - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-DEV-2012-08-23 (Development)
- NEP-FDG-2012-08-23 (Financial Development & Growth)
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