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Testing The Aid-Growth Nexus For South Asia, 1971-2005

Author

Listed:
  • Andaleeb KAOSAR
  • Idrees, M.

Abstract

This article tests the relationship between the foreign aid and economic growth using the data from 1971 to 2005 for the region of South Asia. We find that foreign aid is highly effective towards working of the economy of the region. The Least Squares Dummy Variables (LSDV) model with fixed effects is employed to establish the existence of relationship between foreign aid and economic growth. Furthermore, this research draws some policy implication for the further development of the region keeping the effectiveness of foreign aid in mind.

Suggested Citation

  • Andaleeb KAOSAR & Idrees, M., 2010. "Testing The Aid-Growth Nexus For South Asia, 1971-2005," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    • Handle: RePEc:eaa:aeinde:v:10:y:2010:i:2_17
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    File URL: http://www.usc.es/economet/reviews/aeid10217.pdf
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    References listed on IDEAS

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    14. B. Seetanah, 2009. "Is Foreign Direct Investment Growth Conducive? New Evidences From Sub-Saharan African Countries, 1980-2005," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(2).
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    Cited by:

    1. Ferreira, I.A.R. & Simoes, M.C.N., 2013. "Aid And Growth: A Comparative Study Between Sub-Saharan Africa And Asia," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 113-132.

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