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Governance and Foreign Aid in ASIAN Countries

  • Aviral Kumar Tiwari

    ()

    (ICFAI University, Tripura)

  • Mamoni Kalita

    ()

    (ICFAI, University, Tripura)

This paper examines the determinants of flow of foreign aid in the 20 ASIAN countries in a panel framework. The model includes the foreign aid, foreign direct investment, six measures of governance, along with the purely economic variables which have been taken as control variables. Estimation analysis was carried out by using pooled annual time series data from 2002 to 2008 in the framework of fixed and random effect model. Relevance of GMM (1991) and GMM (1998) estimates were also evaluated. We find that there is strong evidence of significantly positive impact of past year's aid flow and regulatory quality on the current year's aid flow while significantly negative impact of exports of goods and services, political stability and control over corruption on the current year's aid flow, weak evidence of the negative impact of population, voice and accountability, and rule of law on the current year's aid flow and weak evidence of significantly positive impact of government effectiveness on the current year's aid flow.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P44.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 1 ()
Pages: 453-465

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Handle: RePEc:ebl:ecbull:eb-10-00724
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  1. Cebula, Richard J., 1995. "The impact of federal government budget deficits on economic growth in the united states: an empirical investigation, 1955-1992," International Review of Economics & Finance, Elsevier, vol. 4(3), pages 245-252.
  2. Azmat Gani, 2009. "Governance and foreign aid in Pacific Island countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 112-125.
  3. Gould, David M. & Gruben, William C., 1996. "The role of intellectual property rights in economic growth," Journal of Development Economics, Elsevier, vol. 48(2), pages 323-350, March.
  4. Aviral Kumar Tiwari, 2010. "Corporate governance and economic growth," Economics Bulletin, AccessEcon, vol. 30(4), pages 2825-2841.
  5. James E. Anderson & Douglas Marcouiller, 1997. "Trade and Security,I: Anarchy," NBER Working Papers 6223, National Bureau of Economic Research, Inc.
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